WORLD HISTORY

Detailed explanation-1: -The influx of these precious metals and the resulting money supply shocks help explain the price increase in Spain during the 16th century.

Detailed explanation-2: -Influxes of Gold and Silver into Europe The metals were imported from America. The Spanish who offered cheap labor flooded the European market with cheap metals which led to a relative decrease in their value.

Detailed explanation-3: -Inflation in Spain had two main causes. First, Spain’s population had been growing. As more people demanded food and other goods, merchants were able to raise prices. Second, as silver bullion flooded the market, its value dropped.

Detailed explanation-4: -Influx of silver and getting rid of Jews and Muslims and demand for products causes a massive inflation in economy of Spain. The country was rich but wasn’t producing anything because of their low manufacturing class and large demands for goods. This caused Spain’s economy to collapse.

Detailed explanation-5: -Overtime, gold and silver brought from American lands weakened Spain. Since Spain had imported so much gold and silver from America, the metals declined in value in Spain and in the rest of Europe. Due to this devalue of metals, prices soared, causing inflation.