1. Post-Classical Era Economics

2. Economic Innovations
Banks – banks would hold government and personal gold & silver, keeping your assets in one,
protected location (Venice/Italian city-states – Medici Family $$$)
Printed Money – bank notes that represented a portion of gold or silver held by the bank,
redeemable at the cashier, making trade safer, quicker, and lighter (Tang & Song Dynasty)
Minting Coins – gold and silver coins created by the empires (govs) and used to reimburse or
redeem bank notes—while started in the Classical Era, spread in popularity
Checks – allow people to issue written payments to their banks which are withdrawn by the
Recipient, making trade safer, quicker, and lighter (Abbasid Caliphate – called sakks)
All of these allowed for better and more
efficient trade between empires and regions***

3. Economic Innovations II
Bills of Exchange – or promises to pay a certain amount by a certain time – were used
extensively in Venice and the Tang Dynasty as IOUs between trusted trade partners
This allowed high-volume trade without having to carry around large
amounts of gold or silver
Debit & Credit – running credit (available money) and debit
(debt/owed amount) tabs between trusted trade partners
This allowed businesses
and individuals to exchange
quicker and more efficiently

5. Trade Organizations (N. Europe)
Trade organizations – a trade organization is a group of companies, towns, or
states that agree to engage in beneficial trade
Hanseatic League (HANSA) – 1358 – First trade organization – was a security
agreement between guilds (people who controlled labor, production, and prices)
These merchant towns eventually became wealthy
and could afford small, private armies
Eventually dominated and monopolized all trade in
N. Europe until major European empires emerged