Timeline of Financial Innovation in Medieval Western Europe
By FRANTZ
11th Century: Norman expansion (North-Sea Empire) leads to the creation of the Exchequer and forms the syncretic basis for the 13th century Hanseatic League
12th century: King Louis VII of France embarks on the 2nd crusade and involves France in "The Anarchy" civil war between England and Normandy. France entrusts finances to the Knights Templar, creating the bureau that later became the Chambre des Comptes.
13th century: French expansion against the English Normans to retake Normandy. French deficits due to war with the English leads the King to introduce France's first taxes. France taxing the clergy started a conflict later escalating into the Avignon captivity of the papacy (the Pope now lives in France, not Rome). In Northern Europe the Hanseatic league is established, laying the foundations for free trade.
14th century: England kidnaps King John II of France for a ransom that France agrees to pay, further exacerbating the French deficit and French taxes. In response, the Papacy ends the Avignon captivity, re-establishing itself in Rome with much lower revenues, which the Papacy compensates for by expanding Indulgences and Chancery taxes