The Dutch-Spanish confrontation in the 17th century began as a local insurrection but evolved into the world's first global conflict--a conflict that profoundly influenced the relationship between Europe and the Indies as well as the European balance of power and the world economy. This is the first study of the conflict and its immediate aftermath. Israel reveals the deep and complex divisions between the political elites on both sides and demonstrates the decisive impact of political and military activity on the economic fate of Europe and the wider world.

For nearly two centuries the Dutch Republic, despite its small size and population, functioned as the hub of world trade, shipping, and finance. This is the first detailed general account of that hegemony from its origins in the sixteenth century to the final collapse of the Dutch trading system in the eighteenth century. The economic structure of the early modern world was such that the Dutch Republic--particularly its chief business emporium, Amsterdam--was able to dominate the world economy to a far greater degree than any commercial power before or since. Using archival and secondary sources, this book explains how one small nation was able to maintain this ascendancy for so long, and details the mechanisms by which this was achieved and sustained, as well as the stages of its evolution.