Classic accounts of the English industrial revolution present a long period of stagnation followed by a fast take-off. However, recent findings of slow but steady per capita economic growth suggest that this is a historically inaccurate portrait of early modern England. This growth pattern was in part driven by specialization and structural change accompanied by an increase in market participation at both the intensive and extensive levels. These, I argue, were supported by the gradual increase in money supply made possible by the importation of precious metals from America. They enabled a substantial increase in the monetization and liquidity levels of the economy, hence decreasing transaction costs, increasing market thickness, changing the relative incentive for participating in the market and allowing agglomeration economies to arise. By making trade with Asia possible, precious metals also induced demand for new desirable goods, which in turn encouraged market participation. Finally, the increased monetization and market participation made tax collection easier. This helped the government to build up fiscal capacity and as a consequence to provide for public goods. The structural change and increased market participation that ensued paved the way for modernization.

中文翻译：

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近代早期英格兰的货币与现代化

英国工业革命的经典描述呈现出长期的停滞，然后是快速起飞。然而，最近关于缓慢但稳定的人均经济增长的调查结果表明，这在历史上是对现代早期英格兰的不准确描述。这种增长模式部分是由专业化和结构变化驱动的，伴随着集约和广泛层面的市场参与度的增加。我认为，这些都得到了从美国进口贵金属导致的货币供应量逐渐增加的支持。它们使经济的货币化和流动性水平大幅提高，从而降低了交易成本，增加了市场厚度，改变了参与市场的相对动机，并允许出现集聚经济。通过使与亚洲的贸易成为可能，贵金属还引发了对新的理想商品的需求，这反过来又鼓励了市场参与。最后，货币化和市场参与度的提高使税收征收更加容易。这有助于政府建立财政能力，从而提供公共产品。随之而来的结构变化和市场参与度的增加为现代化铺平了道路。