In general, the findings of this research help us to call into question any easy notion raised by the Little Divergence theory, that the economy of northwest Europe was increasingly ‘better’ or ...Show moreIn general, the findings of this research help us to call into question any easy notion raised by the Little Divergence theory, that the economy of northwest Europe was increasingly ‘better’ or ‘more efficient’ than that of much of the rest of Europe from the medieval period through the early modern period. The over-reliance on wages, that the Little Divergence theory has heretofore done, should be called into question, and other indicators should be provided in order to create a more nuanced picture of what was actually occurring. Additional evidence will show that the Little Divergence was not as pronounced as is currently believed. More specifically, although differences in government types increased and considerable levels of direct integration between very distant states across Europe have not been proven, findings suggest that countries throughout Europe from the seventeenth century onwards were learning how to create effective public debt systems of which interest rates suggest that they were not markedly different from those that are supposed to be the most sophisticated European economies (i.e. the Netherlands and England). This means that they were effectively adopting the most sophisticated financial models available to their own local situations. This resulted in a convergence of financial practices that helped to integrate the economies of Europe, at a time when the Little Divergence is supposed to have been separating them. This paper’s general finding is that interest rates suggest that, in some ways, the early modern period experienced a ‘Little Convergence’ rather than a ‘Little Divergence.’ It will show that the common notion of northwest European countries being economically more successful than the rest of the continent needs considerable nuance.Show less