The invisible hand : how market economies have emerged and declined since AD 500 The Invisible Hand offers a radical departure from the conventional wisdom of economists and economic historians by showing that factor markets and the economies dominated by them the market economies are not modern but have existed at various times in the past. This work analyses three major pre industrial examples of successful market economies in western Eurasia: Iraq in the early Middle Ages Italy in the high Middle Ages and the Low Countries in the late Middle Ages and the early modern period. It then draws parallels to England and the United States in the modern period. These areas successively saw a rapid rise of factor markets and the associated dynamism followed by stagnation which enables an in depth investigation of the causes and results of this process