USA HISTORY

Detailed explanation-1: -It decreased the price of silver. It created the first global economy. It opened the first European trade route with Asia.

Detailed explanation-2: -Fluctuating values of silver caused the real salaries of Chinese officials to rise and fall, encouraging graft and corruption. For Spain, the declining value of silver meant disaster. So much so that the Spanish crown actually experienced bankruptcies during times of record silver production.

Detailed explanation-3: -The silver produced lit-tle economic growth in Spain because the monarchy wasted its share in a vain attempt to preserve Catholic and Habsburg hegemony in Europe, and Spaniards remained satisfied to purchase manufactures from abroad rather than developing domestic industries.

Detailed explanation-4: -Silver was paramount to East Asia’s introduction into the global trade market. Under the Ming and Qing empires, China hoarded silver to boost its economy and increase its trading power. Many historians argue that silver was responsible for the birth of global economics and trade.

Detailed explanation-5: -Simultaneously, a large amount of American silver was transferred to China through the Philippines. Thus, profits encouraged European merchants across the Pacific, shipping silver from America, thereby becoming a major source of the silver influx into China.