Money

In fifteen-century Italy the financial system of the world underwent a forceful development with the rise of the Medici family. With their ascent money lending ceased to be disreputable, it rather became magnificent. This led to a new kind of power. The legacy this family left non only in Florence but alike in all of Europe is fibrous. Perhaps no another(prenominal) family left such an imprint on an age as the Medici left on the Renaissance. Some people even feel out that they paid for the Renaissance.

They were foreign exchange dealers and members of the Arte de Cambio. During the 13th century they became powerful loan sharks and Florences answer for the Sopranos, a small town clan known more for violence than finance. As a matter of fact, in a period of 17 years, 5 Medici were sentenced to death for committing capital crimes. However, in the 15th century Giovanni di Bicci de Medici appeared deficient to make his familys name totally legitimate. Part of the undercover of his success was an ingenious bit of creative accounting that got the Medici away the hook of the anti-usury laws. He then evolved money lending into banking and created the long-familiar Medici Bank.



Interestingly, Giovannis Secret Book demonstrates that the key to his success was not so much size as diversification. Earlier Italian banks had been massive and very vulnerable to default by a single bad borrower. But the Medici bank was made up of multiple interlocking partnerships, each in some cadency independent from the rest. It was this decentralization that was the key to their astonishing profits. Under Giovannis leadership the Medici bank extended from Florence to Rome. This diversification traveled through and through all of Europe making the Medici the wealthiest family of their time.If you want to get a full essay, order it on our website: Ordercustompaper.com



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