
Florence, Italy
After the Crusades ended, there was an increased demand for goods from the Middle East and Asia during the Middle Ages and the Renaissance. While the Crusades had wrought destruction in the lands they touched, they also introduced the Europeans to many products from that area of the world. Trading cities in Italy and beyond developed trading relationships with the Byzantine and Muslim Empires to facilitate the import and sale of various products. In addition, European cities produced their own goods that were well-received in the Middle East. Products like woolens, leather, and silks were created in Italian city-states and shipped throughout the Eastern Hemisphere.
Such an increase in trade facilitated the use of credit and banking. During the Middle Ages, the Church banned usury, or the practice of making loans that were unethical or took advantage of others' misfortunes. Because of this, the Church was removed from most of the economic development of the time. Banks began to offer loans to merchants, and charged interest to recoup their expenses, a practice that was accepted during the Renaissance. As massive amounts of products were shipped long distances, credit provided through letters allowed items to be purchased and sold without immediate exchange of money. Arabic numbers, which were developed by the Islamic civilization, reached Europe, and were integrated into European bookkeeping systems. This improved accuracy, and formed a common system of booking to expedite trade.
Northern Italian City-States
During the Middle Ages, Europeans suffered from war and plague. Those who survived wanted to celebrate life and take advantage of what the world had to offer. In the early 1300s, a movement began in Italy that reflected this new perspective. This movement was called the Renaissance, and it was marked by a renewed interest in the greatness of the ancient Greeks and Romans.

It made sense that the Renaissance began in Italy, as the ruins of the Roman Empire reminded Italians of Roman glory, and Italy had a central location with access to trade routes that linked Middle Eastern markets with the rest of Europe. As a result of their commercial prosperity, several Italian city-states rose to prominence, and contributed to driving the Renaissance culture. In this interactivity, you will learn about some of the important Italian city-states. Click the player button to begin.
View a printable version of this interactivity.
The Medici Family

Lorenzo de' Medici
While many Italian city-states had governments in place during the Middle Ages and the Renaissance, most of them were actually ruled by wealthy individuals and families who were active civic leaders. Often, these wealthy families were merchant traders who involved themselves in the business, politics, and culture of a city-state. During this time period, the Catholic Church and the Pope were based out of Avignon, France, so the Church only played a small role in Northern Italian politics.
None of these ruling families are as famous as the Medici family of Florence. Beginning under the leadership of Cosimo de' Medici in fourteenth century Florence, the Medicis were involved in the banking industry. However, Cosimo de' Medici was also a political leader in Florence who financially supported many artistic and academic projects. Later, his grandson, Lorenzo de' Medici, became ruler of the Florentine Republic during the Italian Renaissance. He financially supported several famous Renaissance artists, including Michelangelo.