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They weren't medieval ...
by Manhattan-Eric Italy's economy was based on international trade and finance,
Spain's economy was based on colonial exploitation that has similarities to our exploiting cheap labor in developing markets,
Portugal's was based on importing raw material and transforming it into finished products.
Economies are always about: supply and demand, capital and investment, borrowing and spending.
BTW, these were the leading global economic powers in THEIR day. And you'd be surprised how quickly and hard they fell -- there was no recovery possible through "deflation" as you suggest.
World Leaders To Discuss Averting
by UncleBuckets Currency War
October 6, 2010
At the height of the global financial crisis two years ago, world leaders braced for a trade war. Governments were desperate to save jobs and protect their industries from foreign competition.
In the end, they generally avoided protectionism. But there's a new danger now.
When finance ministers gather in Washington D.C. later this week, they'll talk about how to avert a currency war.
Governments around the world are disappointed that their economies are recovering so slowly, and they're seeking new ways to boost growth
Japan's trade surplus shrank by more than one-third in 2001
by madeinjapan Japan's trade surplus, a key indicator of the country's economic health, shrank by more than one-third in 2001 to its lowest level in 18 years.
The news, which represents the 18th consecutive monthly fall in the surplus, underlines the weakness of Japan's key export industries.
Concern over falling Japanese exports recently persuaded the government to move towards a weak-yen policy, which has seen the currency fall to three-year lows against the US dollar.
If the current weak yen persists, as many economists predict, the trade surplus should start to widen again this year
