What caused inflation in Europe?

The increase in economic activity in Europe led to an overall increase in many nations' money supply. Inflation occurs when people have more money to spend and thus demand more goods and services. Because the supply of goods is less than the demand for them, the goods become both scarce and more valuable.

Similarly one may ask, what was one cause of European inflation?

What 2 major reasons caused the European Inflation? 1. The demand for goods and services grew as the population grew - Because there were more people than goods, sellers could RAISE the prices. The increase flow of gold and silver also fueled inflation - it was used to make money.

Secondly, what caused inflation in Spain?

Generally it is thought that this high inflation was caused by the large influx of gold and silver from the Spanish treasure fleet from the New World, including Mexico, Peru, and the rest of the Spanish Empire.

How did New World foods lead to a population increase in Europe?

The exchange of plants, animals, and germs between the New World and Europe following the discovery of America in 1492. New World foods transformed European society by increasing agricultural yields and improving diets, thus stimulating population growth.

What country broke away from Spain?

In 1640, Portugal split away after Philip II had incorporated it to its domains in 1581. A second independence tide came about following the Independence of the Thirteen Colonies in North America and the Battle of Trafalgar that heralded the end of the Spanish Atlantic hegemony.

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