Prices Revolutions There have been four long waves of rising prices in the rhythm of human history. During the waves, there has been significant comparative price equilibrium. Historians argue that it has not been a cyclical pattern. Additionally, the price revolutions in times of general crises have no regular periodicity (Drelichman 120-147).
The revolutions have no fixed time. For example, some revolutions have lasted for as short as eighty years while others have gone as far as 180 years. All the price revolutions experienced vary by time, magnitude, momentum and velocity. During the first stage of every revolution, there was material progress, people had confidence in culture and they were optimistic of the future. Such cases explain why the first stage indicated an equilibrium condition (Drelichman 120-147).
The second stage of every price revolutions experienced instability. The instability arose from the prices that break into this stage, from the borders of the previous equilibrium. During the stage, prices went up and down. Furthermore, the stage experienced political instability in countries, social disruption, and general cultural anxiety (Pamuk 50-240).
During the third stage, people started to think about the price inflation as an inexorable condition. They began to notice the fact that the price inflation was a long-term effect. However, their solution to the issue was more harmful. The choices they made further pushed the prices higher. In the process of the stage, there were scenes of hoarding, price fixing, price gorging, and high levels of cheating.
In the fourth stage, the institutional inflation was still in place. During the stage, the crisis was more damaging than before. Prices went high and the inflation condition was highly unstable. There was increased volatility in the end. Commodity movements suffered from severe shock prices. Additionally, the money supply alternated between expansion and contraction. Most governments spent more than their revenues causing the financial markets to become more unstable. The countries with biggest economies experienced fiscal stresses (Pamuk 50-240).
In the 18th century, the human race experienced the great wave. During that wave, there were cultural crises in the world. It included economic collapse, international wars and increased social violence. It was due to these events that caused motions of price-revolution experienced relieve. The prices went down, rents became affordable and there were low interests. However, the short deflation ended and a period of equilibrium followed. It lasted for eighty years. There was an end to long-term inflation. Prices declined further and stabilized. Returns to land fell significantly and wages rose (Pamuk 50-240).
During revolutions, there were cultural consequences. People had lost faith in institutions and they took the alternative of spiritual values. They joined sects and cults. The young lost faith in the future and the past. They gave way too easily to alienation.
The first wave saw the medieval price revolution. It took place between 1180 and 1350. It was a crisis that was facing the 14th century. The second wave saw the equilibrium of renaissance taking place. It happened during the 16th and the 17th century. It saw an increasing instability in general prices. That was from 1490 to 1650. The third wave saw the equilibrium of the enlightenment. It happened during 1660 to 1730. The wave continued to experience price revolution until the 18th century. The fourth wave saw the Victorian equilibrium. It took place from the 18th century to the 20th century (Dennis 15-200).
Work Cited
Dennis Owen Flynn. Global Connections and Monetary History, 1470-1800. New York: Ashgate, 2003. Print
Drelichman, Mauricio. ” nstitutions and the resource curse in early modern Spain.” Institutions and Economic Performance (2008): 120-147. Print
Pamuk, Sevket. A Monetary History of the Ottoman Empire. New York: Cambridge University Press, 2000. Print
