The Function of Commercial Centers in the Modernization of European Capitalism: Amsterdam as an Information Exchange in the Seventeenth Century

Abstract

During Amsterdam's development as the commercial center of Europe in the seventeenth century, an informal “information exchange” appeared among the economic and political institutions of the city. Informational economies of the types discussed by Stigler, North, and Pred led to the emergence of Amsterdam as the focal point of information flows throughout Europe. They also encouraged a high level of innovation within all functional areas of Amsterdam's information exchange—especially in long-term data analysis—which contributed to the general modernization of capitalism.

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