What new types of economies developed during the Renaissance?

During the Renaissance, which spanned roughly from the 14th to the 17th century, Europe saw a remarkable transformation in its economy. The period was characterized by significant developments in trade, banking, and commerce, which paved the way for different types of economies to emerge. Here are some of the noteworthy economic types that developed during this period:

1. Mercantilism: This became the dominant economic theory and practice during the Renaissance. Mercantilism is based on the belief that a nation's wealth and power were best served by increasing exports and collecting precious metals such as gold and silver. This led to the governments taking an active role in the economy to accumulate wealth by imposing tariffs, establishing colonies, and controlling trade.

2. Capitalism: Although capitalism as a fully developed system emerged later, the seeds of capitalist economic practices were sown during the Renaissance. There was a marked increase in private ownership and the beginnings of industrial production. The concept of investing in ventures and expecting a return on investment began to take form. The accumulation of capital and reinvestment in the business became a prevalent economic behavior.

3. Banking and finance: Florence and other Italian city-states saw the rise of sophisticated banking systems. This included the development of double-entry bookkeeping for tracking debits and credits, and the establishment of prominent families like the Medici as leading bankers who not only managed money but also provided loans to governments and monarchs across Europe.

4. Urban economies: The renaissance also stimulated the growth of cities (urbanization), which became bustling centers of trade and commerce. This urban economy was supported by the growth in artisan crafts, the establishment of guilds, and an increasing population that demanded goods and services.

These developments stemmed from an increase in literacy, global exploration, technological innovations, and the overall transition from a feudal agrarian economy to a more diverse one that included trade and the monetization of society.