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153-481: In the Middle Ages , local rulers sometimes gave the right to establish staple ports to certain cities. Amsterdam had never received such formal rights (unlike e.g.,  Dordrecht and Veere ), but in practice, the city established a staple-market economy in the 15th and 16th centuries. This economy was not limited to a single commodity, though at first Baltic grain dominated it. It came into being because

306-448: A wealth effect . Additionally, international interest rate differentials affect exchange rates and consequently exports and imports . These various channels are collectively known as the monetary transmission mechanism . Consumption, investment and net exports are all important components of aggregate demand . Consequently, by influencing the general interest rate level, monetary policy can affect overall demand for goods and services in

459-402: A certain sense of complacency amongst some pension actuarial consultants and regulators , making it seem reasonable to use optimistic economic assumptions to calculate the present value of future pension liabilities. Because interest and inflation are generally given as percentage increases, the formulae above are (linear) approximations . For instance, is only approximate. In reality,

612-521: A competitive advantage. What did attract the specialists in this type of trade (apart from the favorable financing possibilities) was the influx of skilled workers and entrepreneurs from the southern Netherlands in the 1580s that helped transfer the sophisticated Flemish textile industry to the Republic. This gave her an industrial base for her export trade. The "rich trades" were also stimulated by government intervention, as they were by nature (because of

765-428: A dollar of future income". The borrower wants, or needs, to have money sooner, and is willing to pay a fee—the interest rate—for that privilege. Interest rates vary according to: as well as other factors. A company borrows capital from a bank to buy assets for its business. In return, the bank charges the company interest. (The lender might also require rights over the new assets as collateral .) A bank will use

918-428: A dominant position for some time, while others ( London , Hamburg ) were left behind and only came into their own when the special circumstances favoring the others came to an end. In the case of Amsterdam, those circumstances changed when the technological possibilities of direct trade improved, obviating the intermediating function of the entrepôt. The mechanism underlying the entrepôt trading-system does not explain

1071-421: A few families and still others lived on isolated farms spread over the countryside. There were also areas where the pattern was a mix of two or more of those systems. Unlike in the late Roman period, there was no sharp break between the legal status of the free peasant and the aristocrat, and it was possible for a free peasant's family to rise into the aristocracy over several generations through military service to

1224-601: A king to rule over them all. By the late sixth century, this arrangement had been replaced by a permanent monarchy, the Kingdom of the Lombards . The invasions brought new ethnic groups to Europe, although some regions received a larger influx of new peoples than others. In Gaul for instance, the invaders settled much more extensively in the north-east than in the south-west. Slavs settled in Central and Eastern Europe and

1377-528: A nominal APR or an effective APR (EAPR). The difference between the two is that the EAPR accounts for fees and compounding, while the nominal APR does not. The annual equivalent rate (AER), also called the effective annual rate, is used to help consumers compare products with different compounding frequencies on a common basis, but does not account for fees. A discount rate is applied to calculate present value . For an interest-bearing security, coupon rate

1530-567: A powerful lord. Roman city life and culture changed greatly in the early Middle Ages. Although Italian cities remained inhabited, they contracted significantly in size. Rome, for instance, shrank from a population of hundreds of thousands to around 30,000 by the end of the 6th century. Roman temples were converted into Christian churches and city walls remained in use. In Northern Europe, cities also shrank, while civic monuments and other public buildings were raided for building materials. The establishment of new kingdoms often meant some growth for

1683-466: A practical skill rather than a sign of elite status. In the 4th century, Jerome (d. 420) dreamed that God rebuked him for spending more time reading Cicero than the Bible . By the 6th century, Gregory of Tours (d. 594) had a similar dream, but instead of being chastised for reading Cicero, he was chastised for learning shorthand . By the late 6th century, the principal means of religious instruction in

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1836-488: A premium on the creation of such a fixed base, where commodities could be stockpiled prior to marketing and final distribution . Furthermore, concentrating storage, transport, and insurance facilities in one place helped reduce transaction costs and keep long-term prices more stable than they otherwise would have been. The entrepôt functioned thus as a central reservoir of commodities, a regulating mechanism smoothing out fluctuations in supply and demand over time and minimizing

1989-520: A putative London entrepôt. However, as the Acts only regulated English and colonial trade (and imperfectly so) and England only managed to dominate a few commodities markets for which it formed the main customer, these attempts were never successful. England would only achieve primacy in world trade after other factors had undermined the Dutch entrepôt. French protectionism was eventually more successful, because

2142-474: A small foothold in southern Spain. Justinian's reconquests have been criticised by historians for overextending his realm and setting the stage for the early Muslim conquests , but many of the difficulties faced by Justinian's successors were due not just to over-taxation to pay for his wars but to the essentially civilian nature of the empire, which made raising troops difficult. In the Eastern Empire

2295-429: Is where Assuming perfect information, p e is the same for all participants in the market, and the interest rate model simplifies to The spread of interest rates is the lending rate minus the deposit rate. This spread covers operating costs for banks providing loans and deposits. A negative spread is where a deposit rate is higher than the lending rate. Interest rates affect economic activity broadly, which

2448-411: Is 10% per annum (before tax). The real interest rate measures the growth in real value of the loan plus interest, taking inflation into account. The repayment of principal plus interest is measured in real terms compared against the buying power of the amount at the time it was borrowed, lent, deposited or invested. If inflation is 10%, then the $ 110 in the account at the end of the year has

2601-460: Is expected from a risky investment is the risk premium . The risk premium an investor requires on an investment depends on the risk preferences of the investor. Evidence suggests that most lenders are risk-averse. A maturity risk premium applied to a longer-term investment reflects a higher perceived risk of default. There are four kinds of risk: Most investors prefer their money to be in cash rather than in less fungible investments. Cash

2754-672: Is no universally agreed upon end date. Depending on the context, events such as the conquest of Constantinople by the Turks in 1453, Christopher Columbus 's first voyage to the Americas in 1492, or the Protestant Reformation in 1517 are sometimes used. English historians often use the Battle of Bosworth Field in 1485 to mark the end of the period. For Spain, dates commonly used are the death of King Ferdinand II in 1516,

2907-425: Is on hand to be spent immediately if the need arises, but some investments require time or effort to transfer into spendable form. The preference for cash is known as liquidity preference . A 1-year loan, for instance, is very liquid compared to a 10-year loan. A 10-year US Treasury bond , however, is still relatively liquid because it can easily be sold on the market. A basic interest rate pricing model for an asset

3060-417: Is the ratio of the annual coupon amount (the coupon paid per year) per unit of par value, whereas current yield is the ratio of the annual coupon divided by its current market price. Yield to maturity is a bond's expected internal rate of return , assuming it will be held to maturity, that is, the discount rate which equates all remaining cash flows to the investor (all remaining coupons and repayment of

3213-401: Is the reason why they are normally the main instrument of the monetary policies conducted by central banks . Changes in interest rates will affect firms' investment behaviour, either raising or lowering the opportunity cost of investing. Interest rate changes also affect asset prices like stock prices and house prices , which again influence households' consumption decisions through

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3366-539: The fyrd , which were led by the local elites. In military technology, one of the main changes was the return of the crossbow , which had been known in Roman times and reappeared as a military weapon during the last part of the Early Middle Ages. Another change was the introduction of the stirrup, which increased the effectiveness of cavalry as shock troops. A technological advance that had implications beyond

3519-717: The Alans , Vandals , and Suevi crossed into Gaul ; over the next three years they spread across Gaul and in 409 crossed the Pyrenees Mountains into modern-day Spain. The Migration Period began, when various peoples, initially largely Germanic peoples , moved across Europe. The Franks , Alemanni , and the Burgundians all ended up in northern Gaul while the Angles , Saxons , and Jutes settled in Britain , and

3672-529: The Benedictine Rule for Western monasticism during the 6th century, detailing the administrative and spiritual responsibilities of a community of monks led by an abbot . Monks and monasteries had a deep effect on the religious and political life of the Early Middle Ages, in various cases acting as land trusts for powerful families, centres of propaganda and royal support in newly conquered regions, and bases for missions and proselytisation. They were

3825-591: The Carolingian Empire during the later 8th and early 9th centuries. It covered much of Western Europe but later succumbed to the pressures of internal civil wars combined with external invasions: Vikings from the north, Magyars from the east, and Saracens from the south. During the High Middle Ages, which began after 1000, the population of Europe increased greatly as technological and agricultural innovations allowed trade to flourish and

3978-531: The Desert Fathers of Egypt and Syria . Most European monasteries were of the type that focuses on community experience of the spiritual life, called cenobitism , which was pioneered by Pachomius (d. 348) in the 4th century. Monastic ideals spread from Egypt to Western Europe in the 5th and 6th centuries through hagiographical literature such as the Life of Anthony . Benedict of Nursia (d. 547) wrote

4131-584: The Gregorian chant in liturgical music for the churches. An important activity for scholars during this period was the copying, correcting, and dissemination of basic works on religious and secular topics, with the aim of encouraging learning. New works on religious topics and schoolbooks were also produced. Grammarians of the period modified the Latin language, changing it from the Classical Latin of

4284-714: The Macedonian dynasty . Commerce revived and the emperors oversaw the extension of a uniform administration to all the provinces. The military was reorganised, which allowed the emperors John I (r. 969–976) and Basil II (r. 976–1025) to expand the frontiers of the empire on all fronts. The imperial court was the centre of a revival of classical learning, a process known as the Macedonian Renaissance . Writers such as John Geometres ( fl. early 10th century) composed new hymns, poems, and other works. Missionary efforts by both Eastern and Western clergy resulted in

4437-486: The Medieval Warm Period climate change allowed crop yields to increase. Manorialism , the organisation of peasants into villages that owed rent and labour services to the nobles , and feudalism , the political structure whereby knights and lower-status nobles owed military service to their overlords in return for the right to rent from lands and manors , were two of the ways society was organized in

4590-513: The federal funds rate (FFR). This is the rate that banks charge each other for overnight loans of federal funds , which are the reserves held by banks at the Fed. Until the 2007–2008 financial crisis , the Fed relied on open market operations , i.e. selling and buying securities in the open market to adjust the supply of reserve balances so as to keep the FFR close to the Fed's target. However, since 2008

4743-505: The funding positions of pension funds as "without returns that outstrip inflation, pension investors face the real value of their savings declining rather than ratcheting up over the next few years". Current interest rates in savings accounts often fail to keep up with the pace of inflation. From 1982 until 2012, most Western economies experienced a period of low inflation combined with relatively high returns on investments across all asset classes including government bonds. This brought

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4896-665: The history of Europe , the Middle Ages or medieval period lasted approximately from the 5th to the late 15th centuries, similarly to the Post-classical period of global history . It began with the fall of the Western Roman Empire and transitioned into the Renaissance and the Age of Discovery . The Middle Ages is the middle period of the three traditional divisions of Western history: classical antiquity ,

5049-571: The price-inelasticity of their demand ) prone to large price fluctuations (as a little over-supply would bring about a large fall in prices). The readiness of the Dutch government to regulate markets and to provide legal monopolies to chartered companies like the Dutch East India Company helped to lessen the risk of investment in such enterprises. All these factors conspired to concentrate trade at entrepôts (in view of their trade advantages as described above) and in particular at

5202-406: The real interest rate they require to receive, or are willing and able to pay, plus the rate of inflation they expect. The level of risk in investments is taken into consideration. Riskier investments such as shares and junk bonds are normally expected to deliver higher returns than safer ones like government bonds . The additional return above the risk-free nominal interest rate which

5355-530: The trade embargoes imposed by Spain on Dutch commerce during the Eighty Years' War had been lifted. The resurgence of Dutch trade on Spain and Portugal and other Mediterranean countries after 1647 overwhelmed the Republic's competitors. To remedy this situation, first England and later France took to coercion in the form of economic and military warfare. The English Navigation Acts of 1651 and 1660-1663 restricted free trade in an attempt to divert trade to

5508-468: The 17th-century German historian Christoph Cellarius divided history into three periods: ancient, medieval, and modern. The most commonly given starting point for the Middle Ages is around 500, with the date of 476 first used by Bruni. Later starting dates are sometimes used in the outer parts of Europe. For Europe as a whole, 1500 is often considered to be the end of the Middle Ages, but there

5661-770: The 2000s. During an attempt to tackle spiraling hyperinflation in 2007, the Central Bank of Zimbabwe increased interest rates for borrowing to 800%. The interest rates on prime credits in the late 1970s and early 1980s were far higher than had been recorded – higher than previous US peaks since 1800, than British peaks since 1700, or than Dutch peaks since 1600; "since modern capital markets came into existence, there have never been such high long-term rates" as in this period. Possibly before modern capital markets, there have been some accounts that savings deposits could achieve an annual return of at least 25% and up to as high as 50%. (William Ellis and Richard Dawes, "Lessons on

5814-478: The 5th and the 7th centuries, going first to England and Scotland and then on to the continent. Under such monks as Columba (d. 597) and Columbanus (d. 615), they founded monasteries, taught in Latin and Greek, and authored secular and religious works. The Early Middle Ages witnessed the rise of monasticism in the West. The shape of European monasticism was determined by traditions and ideas that originated with

5967-731: The 5th century. The Eastern Empire was marked by closer relations between the political state and Christian Church, with doctrinal matters assuming an importance in Eastern politics that they did not have in Western Europe. Legal developments included the codification of Roman law ; the first effort—the Codex Theodosianus —was completed in 438. Under Emperor Justinian (r. 527–565), another compilation took place—the Corpus Juris Civilis . Justinian also oversaw

6120-685: The 6th and 7th centuries, all of them ruled by the Merovingian dynasty, who were descended from Clovis. The 7th century was a tumultuous period of wars between Austrasia and Neustria. Such warfare was exploited by Pippin (d. 640), the Mayor of the Palace for Austrasia who became the power behind the Austrasian throne. Later members of his family inherited the office, acting as advisers and regents. One of his descendants, Charles Martel (d. 741), won

6273-459: The Amsterdam entrepôt (once Antwerp had been eliminated as a competitor) because of the time-window (1590-1620) in which they came to exert their influence. The rise of the Amsterdam entrepôt was therefore to some extent also a matter of being in the right place at the right time. But once the entrepôt had been established, its growth-promoting peculiarities helped Amsterdam (and the port cities in

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6426-704: The Amsterdam entrepôt. It also led to a fundamental restructuring of the Dutch economy, with a large degree of deindustrialization and a shift to service industries, like merchant banking, and foreign direct investment in emerging economies, like the Great Britain of the Industrial Revolution . By that time there was no longer a role for entrepôts in world trade—except Rotterdam , New York, Singapore , and Hong Kong. 44°33′50″N 0°13′32″W  /  44.5638°N 0.2256°W  / 44.5638; -0.2256 Middle Ages In

6579-651: The Arabs. The migrations and invasions of the 4th and 5th centuries disrupted trade networks around the Mediterranean. African goods stopped being imported into Europe, first disappearing from the interior and by the 7th century found only in a few cities such as Rome or Naples . By the end of the 7th century, under the impact of the Muslim conquests , African products were no longer found in Western Europe. The replacement of goods from long-range trade with local products

6732-536: The Bald received the western Frankish lands, comprising most of modern-day France. Charlemagne's grandsons and great-grandsons divided their kingdoms between their descendants, eventually causing all internal cohesion to be lost. In 987 the Carolingian dynasty was replaced in the western lands, with the crowning of Hugh Capet (r. 987–996) as king. In the eastern lands the dynasty had died out earlier, in 911, with

6885-551: The Balkan Peninsula. The settlement of peoples was accompanied by changes in languages. Latin , the literary language of the Western Roman Empire, was gradually replaced by vernacular languages which evolved from Latin, but were distinct from it, collectively known as Romance languages . These changes from Latin to the new languages took many centuries. Greek remained the language of the Byzantine Empire, but

7038-643: The Battle of Poitiers in 732, halting the advance of Muslim armies across the Pyrenees. Great Britain was divided into small states dominated by the kingdoms of Northumbria , Mercia , Wessex , and East Anglia which descended from the Anglo-Saxon invaders. Smaller kingdoms in present-day Wales and Scotland were still under the control of the native Britons and Picts . Ireland was divided into even smaller political units, usually known as tribal kingdoms, under

7191-577: The Byzantine Empire, as the assumption of the imperial title by the Carolingians asserted their equivalence to the Byzantine state. There were several differences between the newly established Carolingian Empire and both the older Western Roman Empire and the concurrent Byzantine Empire. The Frankish lands were rural in character, with only a few small cities. Most of the people were peasants settled on small farms. Little trade existed and much of that

7344-523: The Byzantine Empire, which he sealed with the marriage of his son Otto II (r. 967–983) to Theophanu (d. 991), daughter of an earlier Byzantine Emperor Romanos II (r. 959–963). By the late 10th century Italy had been drawn into the Ottonian sphere after a period of instability; Otto III (r. 996–1002) spent much of his later reign in the kingdom. The western Frankish kingdom was more fragmented, and although kings remained nominally in charge, much of

7497-648: The Christian period as nova (or "new"). Petrarch regarded the post-Roman centuries as " dark " compared to the "light" of classical antiquity . Leonardo Bruni was the first historian to use tripartite periodisation in his History of the Florentine People (1442), with a middle period "between the fall of the Roman Empire and the revival of city life sometime in late eleventh and twelfth centuries". Tripartite periodisation became standard after

7650-660: The Church had widened to the extent that the cultural and religious differences were greater than the similarities. The formal break, known as the East–West Schism , came in 1054, when the papacy and the patriarchy of Constantinople clashed over papal supremacy and excommunicated each other, which led to the division of Christianity into two Churches—the Western branch became the Roman Catholic Church and

7803-499: The Church had become music and art rather than the book. Most intellectual efforts went towards imitating classical scholarship, but some original works were created, along with now-lost oral compositions. The writings of Sidonius Apollinaris (d. 489), Cassiodorus (d. c.  585 ), and Boethius (d. c. 525) were typical of the age. Changes also took place among laymen, as aristocratic culture focused on great feasts held in halls rather than on literary pursuits. Clothing for

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7956-704: The Dnieper River in modern Ukraine to the Adriatic Sea. By 1018, the last Bulgarian nobles had surrendered to the Byzantine Empire. Few large stone buildings were constructed between the Constantinian basilicas of the 4th century and the 8th century, although many smaller ones were built during the 6th and 7th centuries. By the beginning of the 8th century, the Carolingian Empire revived the basilica form of architecture. One feature of

8109-458: The Dutch success we have to take account of a number of factors that in isolation still do not explain the Dutch primacy in world trade, but whose interplay may go far in doing that. The Dutch had gained an important role in the Baltic trade (grain especially) in the 15th and 16th century because of the nature of commodities exchanged (herring for grain, a low-value, high-volume bulk trade) and

8262-585: The Early Middle Ages are mostly illuminated manuscripts and carved ivories , originally made for metalwork that has since been melted down. Objects in precious metals were the most prestigious form of art, but almost all are lost except for a few crosses such as the Cross of Lothair , several reliquaries , and finds such as the Anglo-Saxon burial at Sutton Hoo and the hoards of Gourdon from Merovingian France, Guarrazar from Visigothic Spain and Nagyszentmiklós near Byzantine territory. There are survivals from

8415-606: The Eastern Mediterranean and remained a major power. The empire's law code, the Corpus Juris Civilis or "Code of Justinian", was rediscovered in Northern Italy in the 11th century. In the West, most kingdoms incorporated the few extant Roman institutions. Monasteries were founded as campaigns to Christianise pagan Europe continued. The Franks , under the Carolingian dynasty , briefly established

8568-530: The Eastern branch the Eastern Orthodox Church . The ecclesiastical structure of the Roman Empire survived the movements and invasions in the west mostly intact, but the papacy was little regarded, and few of the Western bishops looked to the bishop of Rome for religious or political leadership. Many of the popes prior to 750 were more concerned with Byzantine affairs and Eastern theological controversies. The register, or archived copies of

8721-538: The Eastern emperors to pay tribute. They remained a strong power until 796. An additional problem to face the empire came as a result of the involvement of Emperor Maurice (r. 582–602) in Persian politics when he intervened in a succession dispute . This led to a period of peace, but when Maurice was overthrown, the Persians invaded and during the reign of Emperor Heraclius (r. 610–641) controlled large chunks of

8874-573: The European bulk trades, not only the Baltic trade, but also the salt trade of the Iberian Peninsula . High profitability of the bulk trade resulted in the possibility of large savings, and the reservoir of savings looking for profitable investment eventually resulted in a lowering of interest rates as a primary effect, and of the development of sophisticated financial markets as a secondary effect. Such financial markets also profited from

9027-436: The European population remained rural peasants. Many were no longer settled in isolated farms but had gathered into small communities, usually known as manors or villages. These peasants were often subject to noble overlords and owed them rents and other services, in a system known as manorialism . There remained a few free peasants throughout this period and beyond, with more of them in the regions of Southern Europe than in

9180-733: The Frankish King Charles the Simple (r. 898–922) to settle in what became Normandy . The eastern parts of the Frankish kingdoms, especially Germany and Italy, were under continual Magyar assault until the invader's defeat at the Battle of Lechfeld in 955. The breakup of the Abbasid dynasty meant that the Islamic world fragmented into smaller political states, some of which began expanding into Italy and Sicily, as well as over

9333-578: The Franks and Celtic Britons set up small polities. Francia was centred in northern Gaul, and the first king of whom much is known is Childeric I (d. 481). His grave was discovered in 1653 and is remarkable for its grave goods , which included weapons and a large quantity of gold. Under Childeric's son Clovis I (r. 509–511), the founder of the Merovingian dynasty , the Frankish kingdom expanded and converted to Christianity. The Britons, related to

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9486-473: The French and Dutch economies were complementary, rather than competitive like the Dutch and English economies. Restricting trade between France and the Republic therefore resulted in the roll-back of the specialization that Comparative advantage had engendered in both economies (though at great cost to the French consumer also) and helped throttle the once-flourishing Dutch industries. In the 17th century,

9639-685: The German tried to annex all of East Francia. Louis the Pious died in 840, with the empire still in chaos. A three-year civil war followed his death. By the Treaty of Verdun (843), a kingdom between the Rhine and Rhone rivers was created for Lothair to go with his lands in Italy, and his imperial title was recognised. Louis the German was in control of Bavaria and the eastern lands in modern-day Germany. Charles

9792-431: The Great (d. 526) and set up a kingdom marked by its co-operation between the Italians and the Ostrogoths, at least until the last years of Theodoric's reign. The Burgundians settled in Gaul, and after an earlier realm was destroyed by the Huns in 436, formed a new kingdom in the 440s. Between today's Geneva and Lyon , it grew to become the realm of Burgundy in the late 5th and early 6th centuries. Elsewhere in Gaul,

9945-438: The High Middle Ages. This period also saw the collapse of the unified Christian church, with the East-West Schism of 1054 . The Crusades , first preached in 1095, were military attempts by Western European Christians to regain control of the Holy Land from Muslims . Kings became the heads of centralised nation-states , reducing crime and violence but making the ideal of a unified Christendom more distant. Intellectual life

10098-403: The Italian peninsula was conquered by the Ostrogoths . The Eastern Roman Empire, often referred to as the Byzantine Empire after the fall of its western counterpart, had little ability to assert control over the lost western territories. The Byzantine emperors maintained a claim over the territory, but while none of the new kings in the west dared to elevate himself to the position of emperor of

10251-619: The Late Middle Ages and beginning the early modern period . The Middle Ages is one of the three major periods in the most enduring scheme for analysing European history : classical civilisation or Antiquity , the Middle Ages and the Modern Period . The "Middle Ages" first appears in Latin in 1469 as media tempestas or "middle season". In early usage, there were many variants, including medium aevum , or "middle age", first recorded in 1604, and media saecula , or "middle centuries", first recorded in 1625. The adjective "medieval" (or sometimes "mediaeval" or "mediæval"), meaning pertaining to

10404-439: The Lombards, which freed the papacy from the fear of Lombard conquest and marked the beginnings of the Papal States . The coronation of Charlemagne as emperor on Christmas Day 800 is regarded as a turning point in medieval history, marking a return of the Western Roman Empire, since the new emperor ruled over much of the area previously controlled by the Western emperors. It also marks a change in Charlemagne's relationship with

10557-405: The Mediterranean, pottery remained prevalent and appears to have been traded over medium-range networks, not just produced locally. The various Germanic states in the west all had coinages that imitated existing Roman and Byzantine forms. Gold continued to be minted until the end of the 7th century in 693-94 when it was replaced by silver in the Merovingian kingdom. The basic Frankish silver coin

10710-411: The Middle Ages, derives from medium aevum . Medieval writers divided history into periods such as the " Six Ages " or the " Four Empires ", and considered their time to be the last before the end of the world. When referring to their own times, they spoke of them as being "modern". In the 1330s, the Italian humanist and poet Petrarch referred to pre-Christian times as antiqua (or "ancient") and to

10863-496: The Middle East than Europe, losing control of sections of the Muslim lands. Umayyad descendants took over the Iberian Peninsula, the Aghlabids controlled North Africa, and the Tulunids became rulers of Egypt. By the middle of the 8th century, new trading patterns were emerging in the Mediterranean; trade between the Franks and the Arabs replaced the old Roman economy . Franks traded timber, furs, swords and slaves in return for silks and other fabrics, spices, and precious metals from

11016-463: The Phenomenon of Industrial Life... ", 1857, p III–IV) The nominal interest rate is the rate of interest with no adjustment for inflation . For example, suppose someone deposits $ 100 with a bank for one year, and they receive interest of $ 10 (before tax), so at the end of the year, their balance is $ 110 (before tax). In this case, regardless of the rate of inflation, the nominal interest rate

11169-718: The Pyrenees into the southern parts of the Frankish kingdoms. Efforts by local kings to fight the invaders led to the formation of new political entities. In Anglo-Saxon England , King Alfred the Great (r. 871–899) came to an agreement with the Viking invaders in the late 9th century, resulting in Danish settlements in Northumbria, Mercia, and parts of East Anglia. By the middle of the 10th century, Alfred's successors had conquered Northumbria, and restored English control over most of

11322-623: The Rhine and eastwards, leaving Charles West Francia with the empire to the west of the Rhineland and the Alps. Louis the German (d. 876), the middle child, who had been rebellious to the last, was allowed to keep Bavaria under the suzerainty of his elder brother. The division was disputed. Pepin II of Aquitaine (d. after 864), the emperor's grandson, rebelled in a contest for Aquitaine , while Louis

11475-515: The Roman Empire into a more flexible form to fit the needs of the Church and government. By the reign of Charlemagne, the language had so diverged from the classical Latin that it was later called Medieval Latin . Charlemagne planned to continue the Frankish tradition of dividing his kingdom between all his heirs, but was unable to do so as only one son, Louis the Pious (r. 814–840), was still alive by 813. Just before Charlemagne died in 814, he crowned Louis as his successor. Louis's reign of 26 years

11628-496: The Romans and the invaders are often similar, and tribal items were often modelled on Roman objects. Much of the scholarly and written culture of the new kingdoms was also based on Roman intellectual traditions. An important difference was the gradual loss of tax revenue by the new polities. Many of the new political entities no longer supported their armies through taxes, instead relying on granting them land or rents. This meant there

11781-636: The Vandals went on to cross the strait of Gibraltar after which they conquered the province of Africa . In the 430s the Huns began invading the empire; their king Attila (r. 434–453) led invasions into the Balkans in 442 and 447, Gaul in 451, and Italy in 452. The Hunnic threat remained until Attila's death in 453, when the Hunnic confederation he led fell apart. These invasions by the tribes completely changed

11934-455: The West were not uniform; some areas had greatly fragmented landholding patterns, but in other areas large contiguous blocks of land were the norm. These differences allowed for a wide variety of peasant societies, some dominated by aristocratic landholders and others having a great deal of autonomy. Land settlement also varied greatly. Some peasants lived in large settlements that numbered as many as 700 inhabitants. Others lived in small groups of

12087-627: The Western Roman Empire. In the 7th century, North Africa and the Middle East—once part of the Byzantine Empire —came under the rule of the Umayyad Caliphate , an Islamic empire, after conquest by Muhammad's successors . Although there were substantial changes in society and political structures, the break with classical antiquity was not complete. The still-sizeable Byzantine Empire, Rome's direct continuation, survived in

12240-567: The acceptance of figurative monumental sculpture in Christian art , and by the end of the period near life-sized figures such as the Gero Cross were common in important churches. During the later Roman Empire, the principal military developments were attempts to create an effective cavalry force as well as the continued development of highly specialised types of troops. The creation of heavily armoured cataphract -type soldiers as cavalry

12393-534: The actual conduct of monetary policy implementation has changed considerably, the Fed using instead various administered interest rates (i.e., interest rates that are set directly by the Fed rather than being determined by the market forces of supply and demand) as the primary tools to steer short-term market interest rates towards the Fed's policy target. Financial economists such as World Pensions Council (WPC) researchers have argued that durably low interest rates in most G20 countries will have an adverse impact on

12546-417: The basilica is the use of a transept , or the "arms" of a cross-shaped building that are perpendicular to the long nave . Other new features of religious architecture include the crossing tower and a monumental entrance to the church , usually at the west end of the building. Carolingian art was produced for a small group of figures around the court, and the monasteries and churches they supported. It

12699-471: The capital deposited by individuals to make loans to their clients. In return, the bank should pay interest to individuals who have deposited their capital. The amount of interest payment depends on the interest rate and the amount of capital they deposited. Base rate usually refers to the annualized effective interest rate offered on overnight deposits by the central bank or other monetary authority. The annual percentage rate (APR) may refer either to

12852-407: The city of Byzantium as the newly renamed eastern capital, Constantinople . Diocletian's reforms strengthened the governmental bureaucracy, reformed taxation, and strengthened the army, which bought the empire time but did not resolve the problems it was facing: excessive taxation, a declining birthrate, and pressures on its frontiers, among others. Civil war between rival emperors became common in

13005-599: The conquest of North Africa sundered maritime connections between those areas. Increasingly, the Byzantine Church differed in language, practices, and liturgy from the Western Church. The Eastern Church used Greek instead of the Western Latin. Theological and political differences emerged, and by the early and middle 8th century issues such as iconoclasm , clerical marriage , and state control of

13158-743: The construction of the Hagia Sophia in Constantinople and the reconquest of North Africa from the Vandals and Italy from the Ostrogoths, under Belisarius (d. 565). The conquest of Italy was not complete, as a deadly outbreak of plague in 542 led to the rest of Justinian's reign concentrating on defensive measures rather than further conquests. At the Emperor's death, the Byzantines had control of most of Italy , North Africa, and

13311-551: The control of kings. There were perhaps as many as 150 local kings in Ireland, of varying importance. The Carolingian dynasty , as the successors to Charles Martel are known, officially took control of the kingdoms of Austrasia and Neustria in a coup of 753 led by Pippin III (r. 752–768). A contemporary chronicle claims that Pippin sought, and gained, authority for this coup from Pope Stephen II (pope 752–757). Pippin's takeover

13464-638: The conversion of the Moravians , Bulgars , Bohemians , Poles , Magyars, and Slavic inhabitants of the Kievan Rus' . These conversions contributed to the founding of political states in the lands of those peoples—the states of Moravia , Bulgaria , Bohemia , Poland , Hungary, and the Kievan Rus'. Bulgaria, which was founded around 680, at its height reached from Budapest to the Black Sea and from

13617-495: The country's economy . However, a low interest rate as a macro-economic policy can be risky and may lead to the creation of an economic bubble , in which large amounts of investments are poured into the real-estate market and stock market. In developed economies , interest-rate adjustments are thus made to keep inflation within a target range for the health of economic activities or cap the interest rate concurrently with economic growth to safeguard economic momentum . In

13770-700: The death of Louis the Child , and the selection of the unrelated Conrad I (r. 911–918) as king. The breakup of the Carolingian Empire was accompanied by invasions, migrations, and raids by external foes. The Atlantic and northern shores were harassed by the Vikings , who also raided the British Isles and settled there as well as in Iceland. In 911, the Viking chieftain Rollo (d. c. 931) received permission from

13923-401: The death of Queen Isabella I of Castile in 1504, or the conquest of Granada in 1492. Historians from Romance-speaking countries tend to divide the Middle Ages into two parts: an earlier "High" and later "Low" period. English-speaking historians, following their German counterparts, generally subdivide the Middle Ages into three intervals: "Early", "High", and "Late". In the 19th century,

14076-578: The disorder, was killed fighting the Goths at the Battle of Adrianople on 9 August 378. In addition to the threat from such tribal confederacies in the north, internal divisions within the empire, especially within the Christian Church, caused problems. In 400, the Visigoths invaded the Western Roman Empire and, although briefly forced back from Italy, in 410 sacked the city of Rome . In 406

14229-512: The dominance of the Dutch in the herring fisheries . These factors became dominant in this trade because Dutch shippers experienced a structural fall in shipping costs due to revolutionary innovations in shipbuilding (the wind-driven sawmill ) — which brought down construction costs — and in ship-design (the Fluyt ship that required smaller crews) at the turn of the 17th century. This so improved their competitive position that they soon dominated

14382-442: The early Carolingian period, with a growing dominance of elite heavy cavalry. The use of militia-type levies of the free population declined over the Carolingian period. Although much of the Carolingian armies were mounted, a large proportion during the early period appear to have been mounted infantry , rather than true cavalry. One exception was Anglo-Saxon England, where the armies were still composed of regional levies, known as

14535-552: The economic and technological conditions of the time required a trade-network, based on what is known in economic terms as an entrepôt , a central point (for a given geographic area) where goods are brought together and physically traded, before they are re-exported to their final destinations. This need followed from the fact that, in those days, transportation of goods was slow, expensive, irregular, and prone to disruption; and that supply and demand for goods fluctuated wildly and unpredictably. The risks entailed by these circumstances put

14688-497: The economic elite of Amsterdam moved with William of Orange to England, where they helped to restart the English international trade, leaving behind in Amsterdam the more religious, and less competitive, burghers. During the 18th century this combination of adverse economic and technological developments (promoting disintermediation ) and foreign protectionism led to a relative decline of Dutch preeminence in world trade and of

14841-685: The economy and hence output and employment . Changes in employment will over time affect wage setting, which again affects pricing and consequently ultimately inflation. The relation between employment (or unemployment) and inflation is known as the Phillips curve . For economies maintaining a fixed exchange rate system , determining the interest rate is also an important instrument of monetary policy as international capital flows are in part determined by interest rate differentials between countries. The Federal Reserve (often referred to as 'the Fed') implements monetary policy largely by targeting

14994-473: The effects of interruptions and bottlenecks. The entrepôt performed an additional function, a derivative of its primary market-function: the physical proximity of merchants promoted the exchange of information about market forces, prices, and developments in the factors underlying supply and demand. This not only lowered the cost of information-gathering but even led to decreasing marginal information costs . Other things being equal, this externality would lower

15147-531: The elites was richly embellished with jewels and gold. Lords and kings supported entourages of fighters who formed the backbone of the military forces. Family ties within the elites were important, as were the virtues of loyalty, courage, and honour. These ties led to the prevalence of the feud in aristocratic society, examples of which included those related by Gregory of Tours that took place in Merovingian Gaul. Most feuds seem to have ended quickly with

15300-524: The emergence of Islam in Arabia during the lifetime of Muhammad (d. 632). After his death, Islamic forces conquered much of the Eastern Roman Empire and Persia, starting with Syria in 634–635, continuing with Persia between 637 and 642, reaching Egypt in 640–641, North Africa in the later seventh century, and the Iberian Peninsula in 711. By 714, Islamic forces controlled much of

15453-403: The empire than tax-payers. The Emperor Diocletian (r. 284–305) split the empire into separately administered eastern and western halves in 286; the empire was not considered divided by its inhabitants or rulers, as legal and administrative promulgations in one division were considered valid in the other. In 330, after a period of civil war, Constantine the Great (r. 306–337) refounded

15606-573: The empire to Christianity , a gradual process that lasted from the 2nd to the 5th centuries. In 376, the Goths , fleeing from the Huns , received permission from Emperor Valens (r. 364–378) to settle in the Roman province of Thracia in the Balkans . The settlement did not go smoothly, and when Roman officials mishandled the situation, the Goths began to raid and plunder. Valens, attempting to put down

15759-447: The empire, including Egypt, Syria, and Anatolia until Heraclius' successful counterattack. In 628 the empire secured a peace treaty and recovered all of its lost territories. In Western Europe, some of the older Roman elite families died out while others became more involved with ecclesiastical than secular affairs. Values attached to Latin scholarship and education mostly disappeared, and while literacy remained important, it became

15912-486: The empire. Such movements were aided by the refusal of the Western Roman elites to support the army or pay the taxes that would have allowed the military to suppress the migration. The emperors of the 5th century were often controlled by military strongmen such as Stilicho (d. 408), Aetius (d. 454), Aspar (d. 471), Ricimer (d. 472), or Gundobad (d. 516), who were partly or fully of non-Roman background. When

16065-454: The entire Middle Ages were often referred to as the " Dark Ages ", but with the adoption of these subdivisions, use of this term was restricted to the Early Middle Ages, at least among historians. The Roman Empire reached its greatest territorial extent during the 2nd century AD; the following two centuries witnessed the slow decline of Roman control over its outlying territories. Economic issues, including inflation, and external pressure on

16218-635: The frontiers combined to create the Crisis of the Third Century , with emperors coming to the throne only to be rapidly replaced by new usurpers. Military expenses increased steadily during the 3rd century, mainly in response to the war with the Sasanian Empire , which revived in the middle of the 3rd century. The army doubled in size, and cavalry and smaller units replaced the Roman legion as

16371-451: The imperial officials called missi dominici , who served as roving inspectors and troubleshooters. Charlemagne's court in Aachen was the centre of the cultural revival sometimes referred to as the " Carolingian Renaissance ". Literacy increased, as did development in the arts, architecture and jurisprudence, as well as liturgical and scriptural studies. The English monk Alcuin (d. 804)

16524-415: The king of the united Austrasia and Neustria. Charles, more often known as Charles the Great or Charlemagne , embarked upon a programme of systematic expansion in 774 that unified a large portion of Europe, eventually controlling modern-day France, northern Italy, and Saxony . In the wars that lasted beyond 800, he rewarded allies with war booty and command over parcels of land. In 774, Charlemagne conquered

16677-679: The large brooches in fibula or penannular form that were a key piece of personal adornment for elites, including the Irish Tara Brooch . Highly decorated books were mostly Gospel Books and these have survived in larger numbers , including the Insular Book of Kells , the Book of Lindisfarne , and the imperial Codex Aureus of St. Emmeram , which is one of the few to retain its " treasure binding " of gold encrusted with jewels. Charlemagne's court seems to have been responsible for

16830-476: The letters, of Pope Gregory the Great (pope 590–604) survived, and of those more than 850 letters, the vast majority were concerned with affairs in Italy or Constantinople. The only part of Western Europe where the papacy had influence was Britain, where Gregory had sent the Gregorian mission in 597 to convert the Anglo-Saxons to Christianity. Irish missionaries were most active in Western Europe between

16983-417: The line of Western emperors ceased, many of the kings who replaced them were from the same background. Intermarriage between the new kings and the Roman elites was common. This led to a fusion of Roman culture with the customs of the invading tribes, including the popular assemblies that allowed free male tribal members more say in political matters than was common in the Roman state. Material artefacts left by

17136-517: The main and sometimes only outposts of education and literacy in a region. Many of the surviving manuscripts of the Latin classics were copied in monasteries in the Early Middle Ages. Monks were also the authors of new works, including history, theology, and other subjects, written by authors such as Bede (d. 735), a native of northern England who wrote in the late 7th and early 8th centuries. The Frankish kingdom in northern Gaul split into kingdoms called Austrasia , Neustria , and Burgundy during

17289-410: The main tactical unit. The need for revenue led to increased taxes and a decline in numbers of the curial , or landowning, class, and decreasing numbers of them willing to shoulder the burdens of holding office in their native towns. More bureaucrats were needed in the central administration to deal with the needs of the army, which led to complaints from civilians that there were more tax-collectors in

17442-480: The maritime zone of the Netherlands, interlinked to Amsterdam by the area's inland waterways ) achieve its position of economic preeminence. Eventually this preeminence would be undermined by technological and economic changes that would eliminate the advantages of the entrepôt and promote disintermediation . However, these developments were not to occur until the 18th century. During the 17th century,

17595-652: The medieval period, and the modern period . The medieval period is itself subdivided into the Early , High , and Late Middle Ages . Population decline , counterurbanisation , the collapse of centralized authority, invasions, and mass migrations of tribes , which had begun in Late Antiquity , continued into the Early Middle Ages. The large-scale movements of the Migration Period , including various Germanic peoples , formed new kingdoms in what remained of

17748-467: The middle of the 4th century, diverting soldiers from the empire's frontier forces and allowing invaders to encroach. For much of the 4th century, Roman society stabilised in a new form that differed from the earlier classical period , with a widening gulf between the rich and poor, and a decline in the vitality of the smaller towns. Another change was the Christianisation , or conversion of

17901-488: The migrations of the Slavs added Slavic languages to Eastern Europe. As Western Europe witnessed the formation of new kingdoms, the Eastern Roman Empire remained intact and experienced an economic revival that lasted into the early 7th century. There were fewer invasions of the eastern section of the empire; most occurred in the Balkans. Peace with the Sasanian Empire , the traditional enemy of Rome, lasted throughout most of

18054-464: The military was the horseshoe , which allowed horses to be used in rocky terrain. The High Middle Ages was a period of tremendous expansion of population . The estimated population of Europe grew from 35 to 80 million between 1000 and 1347, although the exact causes remain unclear: improved agricultural techniques, the decline of slaveholding, a more clement climate and the lack of invasion have all been suggested. As much as 90 per cent of

18207-786: The natives of Britannia  – modern-day Great Britain – settled in what is now Brittany . Other monarchies were established by the Visigothic Kingdom in the Iberian Peninsula , the Suebi in northwestern Iberia, and the Vandal Kingdom in North Africa . In the sixth century, the Lombards settled in Northern Italy , replacing the Ostrogothic kingdom with a grouping of duchies that occasionally selected

18360-458: The need for intermediation in commodities and financial markets still reigned supreme. The Amsterdam entrepôt provided great advantages to European consumers and producers (inherent in its operation) and to the merchants that used it. But there also were losers in the process. Competitors, like the Hanseatic and English merchants, lost appreciable market share and hence income, especially after

18513-437: The north. The practice of assarting , or bringing new lands into production by offering incentives to the peasants who settled them, also contributed to the expansion of population. Interest rate Heterodox An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited , or borrowed (called the principal sum ). The total interest on an amount lent or borrowed depends on

18666-584: The par value at maturity) with the current market price. Based on the banking business, there are deposit interest rate and loan interest rate. Based on the relationship between supply and demand of market interest rate, there are fixed interest rate and floating interest rate. Interest rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment , inflation , and unemployment . The central banks of countries generally tend to reduce interest rates when they wish to increase investment and consumption in

18819-585: The past two centuries, interest rates have been variously set either by national governments or central banks. For example, the Federal Reserve federal funds rate in the United States has varied between about 0.25% and 19% from 1954 to 2008, while the Bank of England base rate varied between 0.5% and 15% from 1989 to 2009, and Germany experienced rates close to 90% in the 1920s down to about 2% in

18972-545: The payment of some sort of compensation . Women took part in aristocratic society mainly in their roles as wives and mothers of men, with the role of mother of a ruler being especially prominent in Merovingian Gaul. In Anglo-Saxon society the lack of many child rulers meant a lesser role for women as queen mothers, but this was compensated for by the increased role played by abbesses of monasteries. Only in Italy does it appear that women were always considered under

19125-640: The peculiar success of the Dutch Republic and Amsterdam in particular. Other merchant cities might have gained this prize and as a matter of fact, Antwerp for a time did. But the Antwerp entrepôt was destroyed with the Fall of Antwerp (1584–1585) and the subsequent expulsion of its Calvinist inhabitants (half of the city population), followed by the centuries-long blockade of the Scheldt trade. To explain

19278-587: The peninsula in a region they called Al-Andalus . The Islamic conquests reached their peak in the mid-eighth century. The defeat of Muslim forces at the Battle of Tours in 732 led to the reconquest of southern France by the Franks, but the main reason for the halt of Islamic growth in Europe was the overthrow of the Umayyad Caliphate and its replacement by the Abbasid Caliphate . The Abbasids moved their capital to Baghdad and were more concerned with

19431-436: The phenomenon of decreasing marginal information cost; this soon helped make Amsterdam an important financial center also. The physical proximity of a strong financial sector partially explains why after 1590 Amsterdam also became a center for the low-volume, high-value "rich trades" (i.e., commodities like spices , silk , and high-quality textiles ). In such trades the Dutch low shipping rates did not necessarily provide

19584-408: The political and demographic nature of what had been the Western Roman Empire. By the end of the 5th century the western section of the empire was divided into smaller political units, ruled by the tribes that had invaded in the early part of the century. The deposition of the last emperor of the west, Romulus Augustulus , in 476 has traditionally marked the end of the Western Roman Empire. By 493

19737-532: The political power devolved to the local lords. Missionary efforts to Scandinavia during the 9th and 10th centuries helped strengthen the growth of kingdoms such as Sweden , Denmark , and Norway , which gained power and territory. Some kings converted to Christianity, although not all by 1000. Scandinavians also expanded and colonised throughout Europe. Besides the settlements in Ireland, England, and Normandy, further settlement took place in what became Russia and Iceland . Swedish traders and raiders ranged down

19890-432: The principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed. The annual interest rate is the rate over a period of one year. Other interest rates apply over different periods, such as a month or a day, but they are usually annualized . The interest rate has been characterized as "an index of the preference . . . for a dollar of present [income] over

20043-419: The protection and control of a male relative. Peasant society is much less documented than the nobility. Most of the surviving information available to historians comes from archaeology ; few detailed written records documenting peasant life remain from before the 9th century. Most of the descriptions of the lower classes come from either law codes or writers from the upper classes. Landholding patterns in

20196-427: The rates are historical. There is a market for investments, including the money market , bond market , stock market , and currency market as well as retail banking . Interest rates reflect: According to the theory of rational expectations , borrowers and lenders form an expectation of inflation in the future. The acceptable nominal interest rate at which they are willing and able to borrow or lend includes

20349-433: The relationship is so The two approximations, eliminating higher order terms , are: The formulae in this article are exact if logarithmic units are used for relative changes, or equivalently if logarithms of indices are used in place of rates, and hold even for large relative changes. A so-called "zero interest-rate policy" (ZIRP) is a very low—near-zero—central bank target interest rate. At this zero lower bound

20502-525: The rivers of the Russian steppe, and even attempted to seize Constantinople in 860 and 907 . Christian Spain, initially driven into a small section of the peninsula in the north, expanded slowly south during the 9th and 10th centuries, establishing the kingdoms of Asturias and León . In Eastern Europe, Byzantium revived its fortunes under Emperor Basil I (r. 867–886) and his successors Leo VI (r. 886–912) and Constantine VII (r. 913–959), members of

20655-473: The same purchasing power (that is, buys the same amount) as the $ 100 had a year ago. The real interest rate is zero in this case. The real interest rate is given by the Fisher equation : where p is the inflation rate. For low rates and short periods, the linear approximation applies: The Fisher equation applies both ex ante and ex post . Ex ante , the rates are projected rates, whereas ex post ,

20808-668: The slow infiltration of the Balkans by the Slavs added a further difficulty for Justinian's successors. It began gradually, but by the late 540s Slavic tribes were in Thrace and Illyrium , and had defeated an imperial army near Adrianople in 551. In the 560s the Avars began to expand from their base on the north bank of the Danube ; by the end of the 6th-century, they were the dominant power in Central Europe and routinely able to force

20961-697: The southern part of Great Britain. In northern Britain, Kenneth MacAlpin (d. c. 860) united the Picts and the Scots into the Kingdom of Alba . In the early 10th century, the Ottonian dynasty had established itself in Germany , and was engaged in driving back the Magyars. Its efforts culminated in the coronation in 962 of Otto I (r. 936–973) as Holy Roman Emperor . In 972, he secured recognition of his title by

21114-412: The total marginal cost of goods trading through the entrepôt. It is a well-known economic fact that in circumstances of decreasing marginal costs, economies of scale occur, which can give an advantage to early entrants that permits them to outgrow their competitors, sometimes even leading to a natural monopoly . This may explain why in the field of entrepôts certain markets ( Antwerp , Amsterdam) gained

21267-497: The towns chosen as capitals. Although there had been Jewish communities in many Roman cities , the Jews suffered periods of persecution after the conversion of the empire to Christianity. Officially they were tolerated, if subject to conversion efforts, and at times were even encouraged to settle in new areas. Religious beliefs in the Eastern Roman Empire and Iran were in flux during the late sixth and early seventh centuries. Judaism

21420-645: The west, Byzantine control of most of the Western Empire could not be sustained; the reconquest of the Mediterranean periphery and the Italian Peninsula ( Gothic War ) in the reign of Justinian (r. 527–565) was the sole, and temporary, exception. The political structure of Western Europe changed with the end of the united Roman Empire. Although the movements of peoples during this period are usually described as "invasions", they were not just military expeditions but migrations of entire peoples into

21573-438: Was a trend throughout the old Roman lands that happened in the Early Middle Ages. This was especially marked in the lands that did not lie on the Mediterranean, such as northern Gaul or Britain. Non-local goods appearing in the archaeological record are usually luxury goods. In the northern parts of Europe, not only were the trade networks local, but the goods carried were simple, with little pottery or other complex products. Around

21726-469: Was an active proselytising faith, and at least one Arab political leader converted to it. In addition Jewish theologians wrote polemics defending their religion against Christian and Islamic influences. Christianity had active missions competing with the Persians' Zoroastrianism in seeking converts, especially among residents of the Arabian Peninsula . All these strands came together with

21879-438: Was an important feature of the 5th-century Roman military. The various invading tribes had differing emphases on types of soldiers—ranging from the primarily infantry Anglo-Saxon invaders of Britain to the Vandals and Visigoths who had a high proportion of cavalry in their armies. During the early invasion period, the stirrup had not been introduced into warfare, which limited the usefulness of cavalry as shock troops because it

22032-474: Was dominated by efforts to regain the dignity and classicism of imperial Roman and Byzantine art , but was also influenced by the Insular art of the British Isles. Insular art integrated the energy of Irish Celtic and Anglo-Saxon Germanic styles of ornament with Mediterranean forms such as the book, and established many characteristics of art for the rest of the medieval period. Surviving religious works from

22185-408: Was invited to Aachen and brought the education available in the monasteries of Northumbria. Charlemagne's chancery —or writing office—made use of a new script today known as Carolingian minuscule , allowing a common writing style that advanced communication across much of Europe. Charlemagne sponsored changes in church liturgy , imposing the Roman form of church service on his domains, as well as

22338-493: Was less need for large tax revenues and so the taxation systems decayed. Warfare was common between and within the kingdoms. Slavery declined as the supply weakened, and society became more rural. Between the 5th and 8th centuries, new peoples and individuals filled the political void left by Roman centralised government. The Ostrogoths , a Gothic tribe, settled in Roman Italy in the late fifth century under Theoderic

22491-436: Was marked by scholasticism , a philosophy that emphasised joining faith to reason, and by the founding of universities . The theology of Thomas Aquinas , the paintings of Giotto , the poetry of Dante and Chaucer , the travels of Marco Polo , and the Gothic architecture of cathedrals such as Chartres are among the outstanding achievements toward the end of this period and into the Late Middle Ages. The Late Middle Ages

22644-470: Was marked by difficulties and calamities including famine, plague, and war, which significantly diminished the population of Europe; between 1347 and 1350, the Black Death killed about a third of Europeans. Controversy, heresy , and the Western Schism within the Catholic Church paralleled the interstate conflict, civil strife, and peasant revolts that occurred in the kingdoms. Cultural and technological developments transformed European society, concluding

22797-439: Was marked by numerous divisions of the empire among his sons and, after 829, civil wars between various alliances of father and sons over the control of various parts of the empire. Eventually, Louis recognised his eldest son Lothair I (d. 855) as emperor and gave him Italy. Louis divided the rest of the empire between Lothair and Charles the Bald (d. 877), his youngest son. Lothair took East Francia , comprising both banks of

22950-496: Was not possible to put the full force of the horse and rider behind blows struck by the rider. The greatest change in military affairs during the invasion period was the adoption of the Hunnic composite bow in place of the earlier, and weaker, Scythian composite bow. Another development was the increasing use of longswords and the progressive replacement of scale armour by mail armour and lamellar armour . The importance of infantry and light cavalry began to decline during

23103-442: Was reinforced with propaganda that portrayed the Merovingians as inept or cruel rulers, exalted the accomplishments of Charles Martel, and circulated stories of the family's great piety. At the time of his death in 768, Pippin left his kingdom in the hands of his two sons, Charles (r. 768–814) and Carloman (r. 768–771). When Carloman died of natural causes, Charles blocked the succession of Carloman's young son and installed himself as

23256-417: Was the denarius or denier , while the Anglo-Saxon version was called a penny . From these areas, the denier or penny spread throughout Europe from 700 to 1000 AD. Copper or bronze coins were not struck, nor were gold except in Southern Europe. No silver coins denominated in multiple units were minted. Christianity was a major unifying factor between Eastern and Western Europe before the Arab conquests, but

23409-409: Was with the British Isles and Scandinavia, in contrast to the older Roman Empire with its trading networks centred on the Mediterranean. The empire was administered by an itinerant court that travelled with the emperor, as well as approximately 300 imperial officials called counts , who administered the counties the empire had been divided into. Clergy and local bishops served as officials, as well as

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