Work

Goldilocks: American Precious Metals and the Rise of the West

Year: 2026

Type: article

Abstract: ABSTRACT We estimate the contribution of the American precious metal windfall to Western Europe's growth performance in the early modern period. The exogenous nature of American precious metal extraction allows for the identification of monetary effects. We find that American precious metals fostered Western Europe's growth by stimulating trade and capital accumulation. Our findings place Western Europe's second‐stage receivers in a particularly fortunate goldilocks zone that enjoyed monetary stimulus, while being insulated against the transport‐loss induced financial crises that caused persistent damage to first‐stage receiver Spain.

Source: Review of Income and Wealth

DOI: 10.1111/roiw.70045

Authors: Yao Chen, Nuno Palma, Felix Ward

Institutions: Tinbergen Institute, Centre for Economic Policy Research, Erasmus University Rotterdam, University of Manchester

Language: English

Topic: Historical Economic and Social Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,300

OpenAlex ID: W7124455544

FWCI:

Cites: 104

Cited by: 8

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