Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2021-04-26
Revision-Date: 2021-05-10
Number: 21-033/VI
Author-Name: Felix Ward
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Yao Chen
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Nuno Palma
Author-Workplace-Name: University of Manchester
Title: Reconstruction of the Spanish Money Supply, 1492-1810
Abstract: How did the Spanish money supply evolve in the aftermath of the discovery of large amounts of precious metals in Spanish America? We synthesize the available data on the mining of precious metals and their international flow to estimate the money supply for Spain from 1492 to 1810. Our estimate suggests that the Spanish money supply increased more than ten-fold. Viewed through the equation of exchange this money supply increase can account for most of the price level rise in early modern Spain.
Classification-JEL: E31, E51, N13
Keywords: early modern period, equation of exchange, quantity theory of money
File-URL: https://papers.tinbergen.nl/21033.pdf
File-Format: application/pdf
File-Size: 3310140 bytes
Handle: RePEc:tin:wpaper:20210033