Timeline of Important Economic Events

By admin on Sun May 04 2025

History develops in leaps, often ideas are a response to circumstances; sometimes, they are ahead of their time. Below is the timeline of economic events that helps to understand the progression of economic thought and how we ended up with the modern economic system as it is.

Here’s an exhaustive chronological list of major economic and financial events throughout history, starting from the creation of money. This includes developments in currency, banking, markets, and major economic policies and crises:

Ancient & Classical Periods

  • ~3000 BCE – First known currency: Sumerians use silver bars and grain as standardized mediums of exchange.

  • ~2500 BCE – Egyptian grain banks: First evidence of government-controlled storage and lending of grain.

  • ~700 BCE – Lydian coinage: First known use of coins in Lydia (modern Turkey), using electrum.

  • ~500 BCE – Greek drachma & Roman denarius: Popularization of coinage and state-backed currency systems.

  • ~200 BCE – 200 CE – Silk Road: Facilitates transcontinental trade between China, India, Middle East, and Europe.

Medieval Period

  • 7th century CE – Islamic banking system: Introduction of early banking and financial concepts like credit and interest-free loans.

  • 9th century CE – Chinese paper money (jiaozi): First use of government-issued paper currency in Sichuan.

  • 12th century CE – Italian banking houses (Medici, Bardi): Foundations of modern banking in Florence and Venice.

  • 1299 – Establishment of the Bardi and Peruzzi Banks in Florence, early multinational banking institutions.

Modern Period (1500–1800)

  • 1602 – Dutch East India Company (VOC): First publicly traded company; Amsterdam Stock Exchange opens.

  • 1694 – Bank of England founded: First modern central bank to manage government debt.

  • 1717 – Isaac Newton sets gold standard: UK pegs pound to gold, setting early precedent for gold-backed currency.

  • 1776 – Adam Smith publishes "The Wealth of Nations": Birth of classical economics.

  • 1790 – First U.S. federal debt issued under Alexander Hamilton.

Industrial Era (1800–1913)

  • 1816 – UK formally adopts gold standard.

  • 1830s–60s – U.S. “Free Banking Era”: Wildcat banks issue private currencies.

  • 1862 – Introduction of Greenbacks in the U.S. during Civil War.

  • 1870s – Global adoption of gold standard.

  • 1881 – Bimetallism debates begin to peak in the U.S.

  • 1896 – Cross of Gold speech by William Jennings Bryan.

  • 1907 – Panic of 1907: Leads to creation of the Federal Reserve.

Interwar Period & Great Depression (1914–1945)

  • 1913 – U.S. Federal Reserve System established.

  • 1929 – Stock Market Crash: Great Depression begins.

  • 1930 – Smoot-Hawley Tariff Act: Worsens global trade collapse.

  • 1933 – Glass-Steagall Act: Banking reforms and FDIC founded.

  • 1936 – Keynes publishes "The General Theory": Modern macroeconomics begins.

  • 1944 – Bretton Woods Conference: Establishes IMF, World Bank, fixed exchange rate system pegged to U.S. dollar and gold.

Post-War Era (1945–1971)

  • 1947 – GATT signed: Foundation for global trade agreements.

  • 1957 – Treaty of Rome: Economic foundation of the European Union.

  • 1965–71 – U.S. inflation and Vietnam War spending strain gold reserves.

Modern Era (1971–2000)

  • 1971 – Nixon ends Bretton Woods: U.S. leaves gold standard, fiat currency regime begins.

  • 1973 – OPEC oil embargo: Triggers global stagflation.

  • 1980s – Reaganomics & Thatcherism: Shift to neoliberal, deregulated economies.

  • 1987 – Black Monday: Largest single-day stock market drop (22% in the U.S.).

  • 1991 – Fall of Soviet Union: Move to global capitalism.

  • 1994 – NAFTA signed: U.S.-Mexico-Canada free trade zone.

  • 1997–98 – Asian Financial Crisis.

  • 1999 – Euro introduced (non-cash).

21st Century (2000–present)

  • 2001 – Dot-com bubble burst.

  • 2002 – Euro banknotes and coins introduced.

  • 2007–08 – Global Financial Crisis: Collapse of Lehman Brothers, subprime crisis.

  • 2009 – Bitcoin created by Satoshi Nakamoto: Start of decentralized digital finance.

  • 2010s – Rise of Fintech, mobile banking, and cryptocurrencies.

  • 2015 – Paris Agreement signed: Climate finance and green investment gain momentum.

  • 2020 – COVID-19 pandemic: Global supply chain collapse, historic stimulus packages, rise in inflation.

  • 2021–23 – Global inflation, rate hikes, supply chain reconfiguration, energy crisis post-Ukraine war.

  • 2024–2025 – Ongoing debates around CBDCs (central bank digital currencies), AI in finance, and dedollarization movements.