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Contemporary historians generally agree that the high inflation experienced in Europe in the 16th century was primarily due to a massive influx of silver and gold. The silver and gold came largely from Mexico and Bolivia.

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Related Questions

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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