Posts categorized under Economic History

“Behold rich lands! May you know how to govern them well!” Hernández Puertocarrero to Cortés in 1519 How did the discovery of large deposits of gold and silver in the “New World” affect the world economy? This paper argues that the long-run consequences were not the same everywhere. In Western Europe, the colonizers par excellence – Spain and Portugal – suffered negative consequences in the long run. The Spanish government enjoyed increased revenues, but it squandered those revenues on ultimately unsuccessful European wars.

When did Portugal’s economy diverge from the European core? This paper constructs the first time-series for Portugal’s per capita GDP for 1500-1850, drawing on a new and extensive database. Starting around 1550 there was a highly persistent upward trend on per capita income, which accelerated after 1700 and peaked 50 years later. At that point, per capita incomes were high by European standards. Portuguese per capita GDP was about as high as that of Britain, Italy and the Netherlands, and higher than that of France, Spain, Germany and Sweden.