Hegemony, Trade and Credit Markets in the early modern Europe
The rise and decline of hegemonic powers in the early modern Europe were largely determined by the intercontinental trade interests. The supremacy in foreign trade was based not only on the geographical location, immigrating merchants and bankers, but also on military capability and mercantilist policies. As clearly shown by the British example, the strength of military forces was dependent on potential of taxation and public borrowing. The business of public credit developed in tandem with capital markets both at home and abroad. The growing foreign trade facilitated use of credit money like bill of exchange, along with metallic money, The debasement of metallic money undertaken repeatedly was one of the causes of inflation in the 16th century.