The review discusses the historical development of financial capitalism, highlighting the Dutch Republic's role in establishing key financial institutions and practices. It delves into the innovative financial products and services that emerged in Amsterdam, making it the financial capital of the world during the early seventeenth century.
The review provides a detailed account of the evolution of financial capitalism, focusing on the Dutch Republic's significant contributions. It explains how Amsterdam became the financial hub of the world, introducing and solidifying institutions like banking, joint-stock companies, and stock markets. The text also explores the various financial products and services that were traded on the Amsterdam Exchange, including futures contracts, stock options, and derivatives. These innovations allowed for financial leverage and attracted capital from across Europe, making Amsterdam a crucial center for global trade and finance. The review emphasizes the historical importance of these developments and their lasting impact on the financial world.
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The development of the capital markets in France and Flanders was interrupted in the second half of the sixteenth century by the Wars of Religion and the Revolt of the Netherlands and a succession of state bankruptcies.
By the early seventeenth century, the Dutch Republic was the most advanced and thriving economy in Europe.
All manner of financial products and services were traded on the Amsterdam Exchange: "commodities, current exchange, shareholdings, maritime insurance ... [it was] a money market, a finance market, [and] a stock market.