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Which statement reflects historians' current assessment of the cause of 16th century inflation in Europe?
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Which statement reflects historians current assessment of the cause of the 16th century inflation in Europe?
A sudden influx of gold from the New World as Spanish treasure galleons sailed into Cadiz laden with tons of gold but no other products. A greatly increased quantity of "money", in the form of gold coins, was chasing the same amount of goods - food, lumber, spices, iron - and driving up the prices of everything worth buying. A robust economy needs a growing quantity of money, but it also needs to have a growing supply of the things worth buying; food, clothing, jewelry, and art.
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