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Based on the reconstruction of the monetary flows of a merchant-banking company operating in Barcelona at the beginning of the fifteenth century, this study aims to understand the reasons behind exchange-rate variations in the local currency with respect to the principal European markets, as well as the modalities and predictability of such oscillations. By using real rather than ‘hearsay’ rates, we present new assessments of the seasonal character of exchange rates and their sensitivity to conditions of currency abundance or shortage. In addition, econometric analysis shows that exchange-rate volatility was quite modest and dependent on geographic and macroeconomic factors, such as the system of commercial flows.
The subject of the presence of foreigners in Europe in the medieval and early modern periods has attracted major scholarly attention since the 1950s with the argument that the expansion of the Mediterranean was based on the circulation of people and goods. Many scholars have accounted for the success of these traders not only by using economic rationales (company organization, business techniques and innovation) but also with reference to shared origin and religion, which ensured close links, mutual support and frequent exchanges of information.
In the wake of these interpretations and giving space to intercultural relations, the issue of economic actors in foreign lands has recently been taken up once again, with work focusing on merchant communities and networks in a range of European and extra-European contexts. Italian, French, English, Spanish, Portuguese and Indian Ocean communities have been analysed in studies that have focused largely on the informal rules underlying the functioning of economic networks scattered over the various areas.
This essay is part of this research trend, and also part of a broader analysis which attempts to reinterpret the organizational choices and commercial penetration strategies used by the Datini group abroad in terms of their effectiveness. My research has essentially focused on at least two fundamental issues: company structure (company form, capital invested, quality of human capital in the various decision-making levels) and the characteristics of the network created by the group.
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