What was the most important change in global political economy before the Industrial Revolution? Flashcards
Silver Revolution and Price Revolution
What was the most important change in global political economy before the Industrial Revolution?
The establishment of the first truly global economy through Manila in 1577.
What did the establishment of Manila create?
Unprecedented intercontinental trade networks.
What currency became the world’s first global currency?
The Spanish peso.
Which mines became the foundation for the global economic system?
Cerro Rico mines in Bolivia.
When were the Cerro Rico mines discovered?
1545.
What is the estimated range of silver produced from Potosi?
30,000 to 60,000 tons.
What was notable about the silver deposit at Potosi?
It was easily the world’s richest silver deposit.
How did global commerce operate according to the reading?
Wholesale merchants linked to larger wholesalers in major cities.
Which major European trading hubs were mentioned?
Antwerp, Genoa, and Lyons.
Which Asian trade networks were connected to Potosi silver?
Manila, Macao, and Goa.
What was the economic impact of silver from 1548 to 1551?
The royal fifths were worth more than three million ducats.
What did the king’s fifth fund?
Wars and interest on debts to foreign creditors.
Who were the foreign creditors mentioned?
Charles V’s and Philip II’s creditors in southern Germany, northern Italy, and Flanders.
What thesis does the evidence support regarding Manila’s establishment?
It created the crucial link connecting separate economic spheres into the first truly global economy.
Fill in the blank: The Spanish peso was backed by _______.
Potosi silver.
True or False: The silver from Potosi was only traded within the Americas.
False.
