The growth of population and the increase of wealth were roughly in equilibrium during the twelfth century. Prices remained comparatively stable throughout this period. The only major economic problem was the so-called “money-famine” of the eleventh and twelfth centuries—an event that would occur in most eras of price equilibrium throughout modern history. The growth of population and prosperity had created demand for a larger circulating medium. With precious metals in short supply, the people of Europe began to use what historian David Herlihy calls “substitute money”—not barter or commodity
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