Study Guide 2 - ! Week 2 Study Guide Foundations of the...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
2 Week 2 Study Guide Foundations of the First Global Economy Monday, 8/29 Online Video: The Ascent of Money Episode 1: From Bullion to Bubbles (entire, 56 minutes) Episode 2: The Bonds of War (first 25 minutes) 1. How, where, when, and why did the system of modern credit originate? How: Started by Fibianaci interest with Arabic numbers Shakespeare’s shylock Jews could charge interest, anyone who lends money to a voyage needs to be paid interest Where: Pisa, Italy When: 1212 AD Why: overseas trade could not operate without lending money 2. How, where, when, and why did the first joint stock companies and stock market develop? How: when Dutch said they could not have their money back from bonds they had to sell to another Where : Amsterdam When: early 1600s Why: to support or invest Dutch East India Company voyages, and received a share of future profits The DEIC forced owners to sell the shares of stock to other individuals in order to "cash in" their investment, which created the first stock market 3. How did John Law engineer the first stock market crash in history? What developments did this set in motion in the 18th and early 19th centuries? o Set French revolution o Fled to Amsterdam, “The company” o He noticed trading of company stocks made shareholders rich o Didn’t think shares should be restricted. Direct transfers in banks o 1716 Paris revive economic confidence in France by issuing cash notes- paper money to revive economic power. Credit printing money o Monopoly company created became chief director in Americas
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/09/2011 for the course INTB 3353 taught by Professor Prodan during the Fall '08 term at University of Houston.

Page1 / 4

Study Guide 2 - ! Week 2 Study Guide Foundations of the...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online