Deflation isn't confined to industrial production or within national borders. It happened with the Dutch tulip industry in the 1630s. The Statute of Secrecy was made official in 1692. Before that? I can see deflation-sparked conflict as the impetus for separation from the rest of the human species. (OMG! Maybe they caused the Dutch Tulip Collapse?!)
As to the aristocracy, feudal income as sustainable wealth was already eroded by the 17th century, so I'm sure any wealthy was surviving via colonialist commerce. But there's that 90 year lag again. Yes, the WW is international, so international trade and colonialism would follow. But would/could they confine their greed within any borders, logistical or magical? Without a Statute of Secrecy, I honestly can't see Wizards restricting themselves from the low overhead revenues of trade within Muggle Europe.
no subject
As to the aristocracy, feudal income as sustainable wealth was already eroded by the 17th century, so I'm sure any wealthy was surviving via colonialist commerce. But there's that 90 year lag again. Yes, the WW is international, so international trade and colonialism would follow. But would/could they confine their greed within any borders, logistical or magical? Without a Statute of Secrecy, I honestly can't see Wizards restricting themselves from the low overhead revenues of trade within Muggle Europe.