Reconstruction of the Spanish Money Supply, 1492-1810

Tinbergen Institute Discussion Paper 2021-033/VI

55 Pages Posted: 27 Apr 2021 Last revised: 10 May 2021

See all articles by Felix Ward

Felix Ward

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Yao Chen

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Nuno Pedro G. Palma

University of Manchester

Multiple version iconThere are 2 versions of this paper

Date Written: April 26, 2021

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.

Keywords: early modern period, equation of exchange, quantity theory of money

JEL Classification: E31, E51, N13

Suggested Citation

Ward, Felix and Chen, Yao and Palma, Nuno Pedro G., Reconstruction of the Spanish Money Supply, 1492-1810 (April 26, 2021). Tinbergen Institute Discussion Paper 2021-033/VI, Available at SSRN: https://ssrn.com/abstract=3834404 or http://dx.doi.org/10.2139/ssrn.3834404

Felix Ward (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Yao Chen

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Nuno Pedro G. Palma

University of Manchester ( email )

Oxford Road
Manchester, N/A M13 9PL
United Kingdom

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