Economic history is mainly the study of past economies.It combines historical and statistical methods along with the application of economic theory to different times in history and to various institutions. While it primarily includes financial and business history, some of it overlaps with social history which helps us get an insight to the changing behaviors of the consumers and sellers.
Economics may be a fairly modern term, but it goes back into ancient times when sales and purchase of items had begun to take place. It was either in the form of barter system or through purchases made in kind.
Once a monetary system was in place, economics began to grow in significance and it gained a new perch when societies began to advance and stock exchanges began to grow.
Today humans live in a time when Economics has left a noticeable footprint in many aspects of our lives. The way in which the economies of countries strengthened and dwindled caused many livelihoods to get better or worse.
The factors that affected these economies helped us understand our mistakes and the world began to look for ways in which it can learn from these mistakes and ensure that it does not falter again.
Terms like inflation and deflation are also closely associated to economics and the world has seen both in different parts of the globe. We will discuss the difference these changes made and how the world coped with such changes.
Economic history helps us understand the extent to which financial decisions can change the ways of the world. These decisions are important for us because they have made a difference before. So we can learn from them and ensure that when we face the same situations once again, we are prepared in a better way to face such situations.