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Population growth in Europe led to an increase in demand for consumer goods. This demand inflated the prices for the goods. At the same time, precious metals such as silver were pouring into Europe from the New World. This increase in money or bullion led to stimulation of the economy.
Wiki User
∙ 11y ago
Wiki User
∙ 11y agoThere was dramatic inflation during the 16thcentury because Spanish conquistadors discovered the Cerro Rica a "mountain made of silver" in the Viceroyalty of Peru (modern day Bolivia). Spain became the richest nation in Europe. The Spanish silver peso became the de facto currency of the world. Unfortunately the Spanish mined so much silver that the huge influx of the precious metal lead to hyperinflation. The Spanish government did not know how to adjust tax rates to help slow the rate of inflation and the silver bubble burst. But frankly, how can you blame them, the study of economics did not start for another 250 or so years until Adam Smith wrote "The Wealth of Nations" in 1776.
Wiki User
∙ 11y agocaused by the influx of silver from the New World in to the Spanish Empire
Wiki User
∙ 11y agothe influx of gold silver from the America's
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Inflation and economic strife contributed to during the constitution?
Shay's Rebellion in Massachusetts
The decade of the 1920s brought a tremendous inflation rate to Europe?
no
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The shift from an agricultural economy to consumer markets contributed to the rise of the free enterprise system in Europe.
What contributed to the economic and social problems of sixteenth-century Europe?
imported silver
What year did inflation start?
Inflation is inherent in every economy. Maybe you're thinking of hyperinflation that happend in Europe during the great depression when money became cheaper to burn than fire wood.
Which invention of the 1600s contributed to the scientific discoveries and observations of the Enlightenment?
Galileo's telescope contributed to the discoveries and observation of the Enlightenment.
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simeon polotsky
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Europe
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Shay's Rebellion in Massachusetts
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The people in Europe decided to move to the colonies during the 1600s and 1700s because they wanted religious freedom.
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isolated from Europe
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What Because of Russia's religion and geography the country was in the 1600s.?
isolated from Europe
What was the country in the 1600s because of Russia's religion and geography?
isolated from Europe
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Christianity, in one form or another.
Which of these was a problem faced by the Ford administration falling oil prices war in Europe inflation or the Helsinki records?
Inflation
What group was least dependent on the labor of serfs in the 1600s?
the nations of western europe
