1. The Primary Cause of European Inflation in 1500-1700: Precious Metals or Population? The English Evidence
- Author:
- Anthony Edo and Jacques Melitz
- Publication Date:
- 10-2019
- Content Type:
- Working Paper
- Institution:
- Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
- Abstract:
- We perform the first econometric test to date of the influences of inflows of precious metals and population growth on the “Great Inflation” in Europe following the discovery of the New World. The English evidence strongly supports the near-equivalent importance of both influences. For 1500-1700, silver is the only relevant precious metal in the estimates. The study controls for urbanization, government spending, mortality crises and climatic changes. The series for inflows of the precious metals into Europe from America and European mining are newly constructed based on the secondary sources.
- Topic:
- Economics, Government, International Political Economy, Urbanization, and Inflation
- Political Geography:
- Europe and England