Price Revolution

Definition

The Price Revolution refers to the period in European history when inflation rose rapidly over a long period, and money devalued. This occurred from the late 15th century to the first half of the 17th century.

Analogy

Imagine if your favorite candy bar that used to cost $1 suddenly costs $5. That's essentially what happened during the Price Revolution - prices for everyday goods skyrocketed.

Related terms

Inflation: A general increase in prices and fall in the purchasing value of money.

Mercantilism: An economic theory that trade generates wealth and is stimulated by accumulation of profitable balances, which a government should encourage by means of protectionism.

Capitalism: An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and distribution determined mainly by competition in a free market.