Best Answer

Exploration,colonization, and exploitation of the New World (which turned out to be much larger in size than anybody initially realized) meant that there was a massive influx of precious metals - gold and silver - into Europe.

In an age before paper money, precious metals were used for coinage, the currency of the day.Much of the gold and silver that arrived from the New World was minted into coins, which meant there was much more cash in circulation, the amount increasing as the century progressed.

The steady and large increase in coinage as the century went on led to inflation, which was more severe because it was ongoing throughout the century for the reasons mentioned above.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why was there such severe inflation in Europe during the 16th century?
Write your answer...
Still have questions?
magnify glass
Related questions

What century did the economy of Europe sink into a deep depression?

14 th

What was one similarity between France during the 1790's and Germany during the 1920's?

Severe inflation contributed to the rise of radical political groups

What is the definition of economic inflation?

Economic inflation or just inflation is the rate at which the general level of prices for goods and services is rising. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum. Inflation or deflation will always occur in a economy but the role of the Fed is to make less severe.

What is inflation on working capital?

What_is_inflation_on_working_capitalimpact of inflation onworkingcapital

Why Spain had severe inflation?

what is the cause of the spanish economy declined and at times spain was bankrupt

The region of Europe experiencing the most severe air pollution is?

Eastern Europe

How did the severe inflation in Germany affect the population?

For Millions of Germans, a lifetime's worth of hard work and savings had vanished!

Old stone age people in Europe survived the severe cold weather during the glacial periods because they?

They built fireplaces and wore fur coats

What is the most severe earthquake in the 21st century?


What is the comparative degree and superlative degree of severe?

Severer and Severest. Example: Winters in Prudhoe Bay are usually severer than winters in Palm Beach. In 2000, Zambia experienced its severest inflation of the past decade.

What is continentality What effect does it have on the climate of Europe?

Continentality can be defined as large landmass. It results to severe temperature in Europe.

Which effect of low inflation might make it difficult for students to go to college?

Low inflation can have severe effects on interest rates and student loans. If the interest rates get too high it can become difficult for students to go to college.