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The Golden Age of Spain, 1474–1598

The extent of inflation and contemporary comment

  • 3 things to know
  • Paper 3

Overview

Recall questions on how far prices rose, why contemporaries found it puzzling, the remedies proposed, the tasa, and the effect on the crown.

What you need to know

Answer each one before you reveal it.

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Process

What was the 'price revolution'?

Who and when

How far did prices rise in sixteenth-century Spain?

Who and when

What remedies did contemporaries propose?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What was the 'price revolution'?

    Model answer

    The sustained inflation, or rise in prices, across sixteenth-century Europe.

  2. 2

    How far did prices rise in sixteenth-century Spain?

    Model answer

    Roughly fourfold across the century, the sharpest sustained rise Europe had known, with the steepest increases in the middle decades.

  3. 3

    Why did contemporaries find inflation so puzzling?

    Model answer

    They had no concept of a general price level and looked for particular villains such as hoarders, middlemen or foreign merchants.

  4. 4

    What remedies did contemporaries propose?

    Model answer

    Price controls on grain through the tasa, restrictions on export, and prosecution of speculators, none of which addressed the underlying causes.

  5. 5

    How did inflation affect the crown?

    Model answer

    Revenues fixed in money terms, such as the encabezamiento agreements for the alcabala, lost value while the cost of armies and fleets rose, worsening the fiscal crisis.

  6. 6

    How did inflation vary across Spain?

    Model answer

    Prices rose first and fastest in Andalusia, near the silver port of Seville, and spread outwards, which supported the argument that silver was responsible.

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