World Economic History

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Presentation transcript:

World Economic History October 15, 2007

The Modern Man Chapter 9

Changes in the Malthusian world Decrease in interest rates Increase in literacy and numeracy Increase in working hours Decrease in interpersonal violence

Where did these changes come from? Evolution of human preferences Survival of the richest

Interest rates Decline in the risk free real rate of return on capital: England 1200: 10% England 1800: 3-4% Why were interest rates higher before the IR? Explanation a) Insecurity of property rights Explanation b) Change in rate of time preference

Literacy

Violence

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