What contributed to inflation in Europe in 1600s?

Answer 1

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.

Answer 2

There 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.

Answer 3

caused by the influx of silver from the New World in to the Spanish Empire

Answer 4

the influx of gold silver from the America's