ABSTRACT
In view of the fact that absolute monarchies arose in countries with greatly varying social and economic structures and that they lasted longest in the most backward, it is odd that they have been so persistently linked to the development of capitalism. In the French case this association has depended in large part on two assumptions: first, that in return for the protection afforded by mercantilist policies the bourgeoisie became either an ally of the monarchy or at least a counterpoise to the nobility; second, that mercantilist policies themselves favoured the development of capitalism. There is no doubt that mercantilism was a key element in the making of French absolutism.1 France was the country of state intervention par excellence. Its monopoly trading companies were stateinspired, state-financed and state-led to a degree unknown in either the Dutch Republic or England. The reinforcement and extension of the guild regime under Colbert were accompanied by a plethora of immensely detailed regulations enforced by a growing number of inspectors. However, if mercantilism strengthened the state, it is not clear that it significantly altered the pace and direction of France’s economic development, much of which was simply beyond its power to affect.
