HIGHER PRICES MADE PEOPLE POORER
- The aarival of American gold and silver increased the amount of money in circulation.
- Spanish currency lost its value relative to goods.
- This worsened the living conditions of ordinary people.
- To offset their declining revenues, the nobility increased taxes.
- Merchants trading with the Americas benefitted most as did high-interest moneylendersand those involved in the important and export of goods.
- The inhabitants of the most powerful empire in Europe became poorer.
- At the same time, part of the silver from the Americas was used to fight wars in Europe or buy luxury goods from abroad.