Glossary
Bank of Amsterdam
Established in 1609, this institution was a pioneering central bank that provided a stable currency and secure deposit facilities, greatly facilitating international trade and setting a standard for modern banking.
Example:
The Bank of Amsterdam became a trusted hub for merchants across Europe, allowing them to exchange various currencies and conduct large transactions with confidence. [1, 2, 5, 16, 22, 31]
British East India Company
A powerful joint-stock company established in 1600 that monopolized English trade with East Asia, significantly boosting England's imperial wealth and global reach.
Example:
The British East India Company eventually became a de facto ruler in large parts of India, showcasing the immense political and economic power joint-stock companies could wield. [1, 8, 35, 36]
Columbian Exchange
The widespread transfer of plants, animals, culture, human populations, technology, and diseases between the Old World (Europe, Africa, Asia) and the New World (the Americas) following Columbus's voyages.
Example:
The Columbian Exchange introduced potatoes from the Americas to Europe, which became a staple crop that helped support significant population growth. [1, 6, 9, 12, 14, 18, 25, 28]
Commercial Revolution
A period of European economic expansion, colonialism, and mercantilism from the late 13th to early 18th centuries, characterized by the growth of trade, banking, and early capitalism.
Example:
The Commercial Revolution laid the groundwork for the later Industrial Revolution by establishing a market-oriented economy and increasing capital accumulation across Europe. [1, 10]
Crop Rotation
An agricultural innovation involving the systematic planting of different crops in a sequence on the same land to improve soil fertility and increase yields.
Example:
Farmers practicing crop rotation might plant wheat one year, then turnips the next to replenish the soil, leading to more consistent and abundant harvests. [1, 2, 13, 19, 36]
Double-Entry Bookkeeping
An accounting method where every financial transaction is recorded in at least two accounts (debit and credit), ensuring accuracy and balance in financial records.
Example:
Venetian merchants used double-entry bookkeeping to meticulously track their complex international trade deals, ensuring they knew exactly where their money was going. [1, 8, 23, 27, 34]
Dutch East India Company
The world's first multinational corporation, founded in 1602, which held a monopoly on Dutch trade with East Asia, pooling capital and sharing risks among investors.
Example:
The Dutch East India Company famously issued its own currency and maintained private armies, demonstrating its immense power and influence over global trade routes. [1, 8, 35, 36]
Enclosure Movement
The process in England of consolidating communal or public lands into privately owned, fenced-off fields, which increased agricultural efficiency but displaced many peasants.
Example:
The Enclosure Movement transformed the English countryside, as traditional common grazing lands were privatized, forcing many landless peasants to seek work in burgeoning cities. [1, 2, 8, 19, 33, 36]
Freehold Tenure
A system of land ownership where the owner has absolute and indefinite rights to the property, providing long-term control and profit potential.
Example:
Under freehold tenure, a wealthy landowner could invest heavily in improving their estate without fear of losing their rights, unlike peasants with more temporary land arrangements. [1, 13, 19, 24, 36, 37]
Guilds
Associations of skilled artisans and craftsmen in cities that regulated their trades, set standards, and provided training, often challenging the power of merchant elites.
Example:
A master baker belonging to a guild would ensure the quality of his bread and train apprentices, maintaining high standards for the craft within the city. [1, 7, 8, 21, 30]
Influx of Gold and Silver
The massive flow of precious metals, primarily silver, from the Americas into Europe, particularly Spain, which significantly increased the money supply.
Example:
The influx of gold and silver from the Potosí mines in Bolivia flooded the Spanish economy, contributing directly to the Price Revolution across Europe. [1, 2, 9, 28]
Little Ice Age
A period of cooler temperatures from roughly the 14th to the mid-19th century, which led to agricultural challenges, delayed marriages, and slower population growth in parts of Europe.
Example:
The colder, wetter summers of the Little Ice Age sometimes led to crop failures, contributing to food shortages and social unrest in various European regions. [1, 8]
New Elite Class
A rising social group of wealthy merchants, bankers, and capitalists who gained economic and often political power, challenging the traditional land-based aristocracy.
Example:
The Fugger family, originally weavers, became a prominent new elite class through banking and mining, lending money to powerful monarchs and popes. [1, 2, 4, 7, 13, 32, 33]
New World Goods
Agricultural products and resources, such as potatoes, corn, tobacco, sugar, and chocolate, that were brought from the Americas to Europe as a result of the Columbian Exchange.
Example:
The introduction of New World Goods like chocolate transformed European diets and created new industries, from confectioneries to tobacco plantations. [1, 6, 9, 12]
Population Growth and Urbanization
An increase in Europe's population, fueled by improved food supply and declining death rates, which led to a significant migration of people from rural areas to cities.
Example:
As population growth and urbanization accelerated, cities like London and Amsterdam swelled, creating both new economic opportunities and challenges like overcrowding and sanitation issues. [1, 4, 17, 20, 25, 29, 32, 33]
Price Revolution
A period of sustained high inflation in Europe during the 16th and early 17th centuries, primarily caused by the influx of New World precious metals and population growth.
Example:
During the Price Revolution, the cost of basic necessities like bread soared, making life increasingly difficult for wage earners whose incomes did not keep pace. [1, 2, 3, 8, 11, 15, 19, 28, 31, 36]
Rise of the Middle Class
The emergence and expansion of a social stratum composed of merchants, bankers, and skilled professionals who gained increasing economic power and influence during the Commercial Revolution.
Example:
The rise of the middle class meant that wealth and social standing were no longer solely determined by birth or land ownership, opening new avenues for social mobility. [1, 3, 4, 10, 13, 35]
Western vs. Eastern European Social Structures
A significant divergence in social organization where Western Europe saw a shift towards free peasantry and commercial agriculture, while serfdom persisted and was often codified in Eastern Europe.
Example:
While peasants in Western Europe gained more freedom and engaged in commercial farming, Western vs. Eastern European social structures meant that serfs in Russia remained tied to the land for centuries longer. [1, 13, 19, 33]