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Unformatted text preview: Medieval Money Banking and New Business Practices • By Central Middle Ages: Western Europe moved increasingly from a barter economy to one based on money. New business practices and services evolved • These changes occurred gradually and in fact barter never actually left Medieval economy 1. Money and Credit Why would people move towards a money economy? • Long distance trade • New sources for precious metals and advancing in mining and minting • Coin and bullion needed to correct trade imbalances (for North in South trade: and for West in West-East trade) • Northerners had to use gold and silver to pay for the more expensive goods • Trade imbalance occurred between the west and the east, in this case the west had to use gold and silver to help pay for the more expensive luxury goods from the east This money came from the following: • Hoarded money returned to circulation • Silver mines discovered in the 13 th Century (important since no new mines had been found in the past 2 centuries...
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This note was uploaded on 04/13/2011 for the course MOS 1803 taught by Professor Gogan during the Fall '10 term at UWO.
- Fall '10