Chapter 4 : MEDIEVAL ECONOMIC THOUGHT

MEDIEVAL ECONOMIC THOUGHT

Introduction to Medieval Economic Thought

• Time Period: The Middle Ages is generally regarded as the period from 476 A.D. (the fall of the Roman empire) to 1453 A.D. (the year Constantinople fell into the hands of Turks).
• Continuity of Economic Thought:
• Some scholars incorrectly view the Middle Ages as a complete break in the continuity of economic thought due to thinkers emphasizing the negative aspects of life.
• Correction: This is not a correct view. Speculation on economic topics such as money, interest, and price continued, and the views of medieval thinkers were similar to those of the Greek thinkers of the past.
• As in Greek thought, medieval economic speculation was only a by-product of ethical and political thought.
• Features of Medieval Society:
• Feudal System: Society was held together by mutual obligations and services, with people enjoying status according to their ranks.
• Communal Nature: "In all directions, medieval life was communal and cooperative in character."
• Guilds: Associations formed for the mutual benefit and protection of their members.
• Economy: People lived largely in a "natural economy."
• Causal Chain: Shortage of money + difficulties of transport → actual volume of trade must have been small → men lived largely in small and self-sufficient units.
• Major Influences on Medieval Life and Thought:

1. The Church: Became a powerful institution after the fall of the Roman Empire. It regulated men's lives, teaching that earthly life was only a preparation for another → people aimed at eternal salvation. It fostered a non-national atmosphere.
2. The Bible
3. Aristotle: Became the philosopher of the Middle Ages; his doctrines became the foundations of medieval economic thought. He influenced medieval views on the nature and functions of money, usury, the principles governing exchange, and the nature of justice.

Key Terms

📌 Exam Tidbits

• Timeline: Middle Ages = 476 A.D. to 1453 A.D.
• Quote: "In all directions, medieval life was communal and cooperative in character."
• Core Misconception: The idea that medieval thought was a…