To pay for his costly war against France, King Edward III of England borrowed enormous sums of money from Florentine bankers, especially the Peruzzi family. When the money ran out in 1342, what did Edward do?

Answer: He renounced or repudiated the loan. As a result the Peruzzi were bankrupted, which created economic chaos in Florence.

Source: History Year by Year by Dorling Kindersley

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