This chapter traces the development of money, credit and banking systems in Europe, from their origins to their modern forms. It examines how the reintroduction of monetary systems following the collapse of the Roman Empire contributed to economic growth. The chapter also discusses the evolution of credit markets, the rise of banks and the development of paper money, with an emphasis on the role these institutions played in supporting economic development. It explores the relationship between financial innovation and economic crises, illustrating how the financial system has both facilitated growth and contributed to periods of instability. The chapter concludes by assessing the impact of financial systems on long-term economic development in Europe.

Building on the foundation in Chapter 14, this chapter focuses on more complex modifying forms, including strategies for using adjective (or adjective-like) forms in more grammatical contexts. The first section explores equative (or copular) clause structures and predicative modifiers. The second section moves on to nonfinite verbs and the ways they can be used in clause structures to function in adjectival, nominal, and even adverbial roles. The third, and final, section investigates comparative forms in languages. This chapter will expand your language’s treatment of different types of modification and nonfinite verb forms.

This chapter explores the economic recovery of Europe following the fall of the Roman Empire, often referred to as the Dark Ages. It highlights the role of technological innovation and the division of labour in revitalizing European economies from the ninth to the fifteenth centuries, building on insights from the work of Adam Smith. The re-establishment of long-distance trade routes and the revival of urban centres were critical factors in this recovery. The chapter also explores the restoration of monetary systems and the development of a more complex economy characterized by the growth of cities and increased production. By focusing on how Europe transitioned from a period of obscurity to one of gradual economic resurgence, the chapter underscores the importance of trade, technology and labour specialization in driving recovery and growth.

The Conclusion reflects on the long-term trajectory of welfare in Europe, highlighting the substantial increases in living standards that have occurred over the past centuries. It considers how technological and institutional developments have enabled sustained economic growth, while also acknowledging the environmental and social challenges that have emerged, particularly in the context of climate change. The Epilogue discusses the potential for future crises, including economic and environmental shocks, and whether Europe’s economic system is resilient enough to manage these challenges. The chapter concludes by emphasizing the importance of learning from historical experiences to address contemporary and future issues related to sustainability, inequality and economic development. By framing modern problems within the context of long-term economic history, the authors offer an optimistic yet cautious outlook on Europe’s ability to continue improving welfare in a sustainable manner.

This chapter traces the early economic history of Europe, focusing on the transition from hunter-gatherer societies to agricultural civilizations. It examines the emergence of cities, the development of trade and the influence of geography on European economic integration. The chapter explores how early agricultural innovations, such as the domestication of crops and animals, laid the foundation for the rise of European civilizations, particularly in Greece and Rome. It also discusses the geo-economic continuity of Europe, showing how trade fostered cultural and political integration despite frequent conflicts. Through an analysis of early European economies, the chapter highlights the role of agriculture and trade as key forces in shaping the region’s development.

This chapter focuses on the role of governments in managing economic growth and development, particularly through macroeconomic policy. It traces the evolution of government intervention in the economy, from the minimal state of the nineteenth century to the more active role governments played in the twentieth century, especially in response to crises such as the Great Depression. The chapter also examines the development of the welfare state and the use of fiscal and monetary policies to stabilize economies. By discussing the successes and failures of government interventions, the chapter highlights the ongoing debate over the appropriate role of the state in managing economic outcomes and ensuring long-term growth.