1. World Economic History
October 15, 2007

2. The Modern Man
Chapter 9

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

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

5. 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

6. Literacy

7. Violence