Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265839 
Year of Publication: 
2022
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2022-063/VI
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
We estimate the contribution of the American precious metal windfall to West Europe's growth performance in the early modern period. The exogenous nature of American money arrivals allows for identification of monetary effects. We find that more than half of West Europe's growth can be attributed to American precious metals, whose arrival promoted trade intensification and capital formation. Our findings place West Europe's second-stage receivers in a particularly fortunate goldilocks zone that enjoyed monetary injections, while being insulated against the transport-loss induced financial crises that caused persistent damage to first-stage receiver Spain.
Subjects: 
Money non-neutrality
Great Divergence
Little Divergence
Smithian growth
market integration
JEL: 
E51
F40
N10
Document Type: 
Working Paper

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