The Economies of Kingdoms
In the real world, we have the phrase “money makes the world go ‘round”, and the same goes for civilizations within your fantasy setting, especially highly-populated places like cities and individual kingdoms. Tiny villages or nomadic communities might have their own way to move about goods and services, but designing something like a whole kingdom requires a little more finesse, a little more understanding of how economies work.
Creating an economic system for any given kingdom within your setting involves understanding how resources, trade, and currency work together to support the kingdom’s society, culture, and governance. A good starting point is to consider the resources available in the surrounding environment. A civilization surrounded by forests might rely on lumber as a primary resource, while a coastal kingdom could have a strong fishing or shipbuilding industry. These natural resources not only shape the economy but also influence the professions, technologies, and daily lives of the people who live their lives within the region. When deciding on these resources, think about how they support the kingdom’s needs: is the kingdom self-sufficient, or does it rely on importing certain goods, like spices, metals, or luxury items? The more specific you get about what’s available, the more authentic and dynamic your economic system will feel to your readers.
Trade is essential to most economies in our own world and those of fantasy, especially if your kingdom lacks certain resources or has particularly valuable items to offer. Neighboring communities, towns, and even distant lands could become trading partners, with each of them bringing something unique to the exchange. If your kingdom in question produces rare magical crystals, they might trade them for grain or textiles they can't produce themselves due to space or climate constraints. Trade routes—whether by land, sea, or magical means—add complexity to the system and narrative, as they can become vital lifelines or, alternatively, targets for bandits or rival nations. You might even introduce a powerful trade guild or merchant class that influences politics due to their wealth and control over these routes. Considering how and why goods move in and out of the kingdom brings a sense of realism and can open up story possibilities related to diplomacy, alliances, or conflicts.
Another key aspect to think about while pondering economies is currency. Not all fantastical kingdoms use coins; some might barter, using goods like grain or livestock as currency, while others could have a complex coinage system with minted gold, silver, and copper coins. The value of currency can also reflect the wealth or scarcity of resources in the kingdom.; for example, a kingdom rich in gold might have a gold-based currency but might struggle to acquire basic goods like food if they lack fertile land. Additionally, currency itself can become an interesting cultural detail—perhaps coins have images of past rulers, mythical creatures, or symbols representing the values of those in power. Think about whether currency is stable or subject to inflation due to political changes, corruption, or a sudden shift in resource availability. This adds another layer to how people view wealth, trade, and even social status.
The social structure of the kingdom will also impact its economy and how it operates on a day-to-day basis. A kingdom with a feudal system might have wealthy landowners who collect taxes or crops from peasants, creating a stark economic divide. Alternatively, a kingdom with a strong guild system could see the economy shaped around skilled trades, like blacksmithing or tailoring, with guilds having power to set prices or protect workers’ rights. If magic is common, magical services or goods might form part of the economy, making enchanters or alchemists highly valued (or heavily taxed!). Think about the working class, too—do commoners struggle to make ends meet, or is the kingdom wealthy enough to support a flourishing middle class? Social and economic hierarchies can inform everything from the price of goods to the overall atmosphere of your kingdom; these hierarchies can also provide rich opportunities for interesting plot lines within your narrative.
Finally, consider the kingdom’s governing body and their control over the economy. A fair ruler might implement reasonable taxes, reinvesting in public projects like roads or schools, while a tyrant could overtax citizens to fund military campaigns or lavish palaces. The government’s priorities affect not only how wealth is distributed but also how stable the economy is. A kingdom constantly at war might suffer from high taxes and scarcity of resources, leading to an economy based on survival and rationing, while a peaceful kingdom could have a thriving market full of artisans, entertainers, and rare goods. By carefully crafting these economic details, you can create a kingdom where wealth, poverty, and power feel real, shaping a world that feels as complex as our own.
