The russian wiki on price revolution says Ползучая инфляция стала тем стимулом, который привёл в конечном итоге к промышленной революции, which translates to in the end result, the creeping inflation led to the industrial revolution, but it doesn't explain how exactly, and it's not obvious to me.

The only explicit link between the two that I could find is in The ‘price revolution’ of the sixteenth century, saying:

The conclusion reached was that the rise in prices <…> greatly encouraged the industrial entrepreneur and promoted the 'rise of capitalism', because commodity prices rose much more than wages in the latter half of the 16th century. This was taken as a proof of decreasing costs and radically widened profit margins in industry.

I thought the industrial revolution, among everything else, was about replacing human labour with machines. The process ended up being cost-effective in the long run, but it must have been expensive initially.

If, according to what I've been finding, the labour was actually getting cheaper due to inflation and lower wages, what was the incentive to move to the machines anyway? Striving for quality (and moreover, confidence that there will be an increase in quality?)

How did the creeping inflation linked to the price revolution cause the industrial revolution? Or is the statement wrong?

  • $\begingroup$ Is the "creeping inflation" you're talking about nominal or real? If it's real, then there's your incentive to automate. $\endgroup$ – heh Nov 7 '19 at 15:45

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