North, D. C., & Thomas, R. P. (1973). Part two, 900-1500. The rise of the West: A new economic history. pp. 19-89.
In the early Middle Ages, the economy of Europe was based on a manoral system. In that system, a lord provided protection to a serf, who in turn provided free labor to the lord. This system began to undergo change during the High Middle Ages of the tenth through twelfth centuries. During that period, economic conditions in Europe changed with the "development and extension of a market for goods" (p. 38). Although agriculture still dominated economics, the High Middle Ages was also a period of increased "urban settlement, specialization, and trade" (p. 43). In the thirteenth century, Europe underwent further expansion in terms of its market-based economy. During that century, urban centers became increasingly important as centers for trade. That century also saw "new innovations" in marketing, such as the fair (p. 55). As the manoral system dissolved, industry and trade became increasingly important to the economy. During that same time, agriculture became decreasingly important (p. 70). North and Thomas describe the fourteenth and fifteenth centuries in Europe as a "hateful time" (p. 71). Plagues, wars, and famine during those centuries caused a drastic decline in the overall population of Europe (p. 72). At the same time, however, the fourteenth and fifteenth centuries marked the final shift from the medieval world to the modern world. This shift can be seen in the accomplishments of the Renaissance during that time (p. 71). Those centuries also saw the continued development of the market-based economic system which has persisted to this day. In this excerpt from their book, North and Thomas provide a good explanation regarding how the European economy evolved over time. The specific period covered is an important one in terms of this development. It is important because it represents the shift ...