Pearson Edexcel · A-Level · History
Course version: 9HI0 · Version from Sept 2015
The Golden Age of Spain, 1474–1598 - 3 The price revolution and its…
Full specification wording
Paper 3, Option 32: The Golden Age of Spain, 1474–1598 - 3 The price revolution and its impact, c1500–c1570: Gold and silver imports and the contemporary discussions on their contribution to inflation; the significance of the writings of Martín de Azpilcueta 1556, and Tomás de Mercado 1568.
Bullion imports from the Americas rose sharply across the sixteenth century, especially after Potosí and Mexican silver production expanded from the 1540s–1550s.
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- Point 2 of 3
- 4 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
Bullion imports from the Americas rose sharply across the sixteenth century, especially after Potosí and Mexican silver production expanded from the 1540s–1550s. Contemporaries debated whether this inflow caused inflation. Martín de Azpilcueta, writing in 1556, argued that money is worth less where it is abundant, an early quantity-theory insight linking plentiful silver to higher prices. Tomás de Mercado in 1568 discussed exchange, trade and the effects of money supply on prices, stressing the role of commerce and the Indies trade. Their significance lies in moving beyond moral complaint towards economic analysis, though they did not isolate all variables. Assess how far bullion imports explain inflation alongside harvests, population and debasement.
What earns the marks
- Describes the scale and timing of gold and silver imports from the Americas and their concentration in Seville and Castile.
- Explains contemporary discussion of bullion as a cause of inflation, including sceptical and supportive voices.
- Analyses Azpilcueta 1556 as an early statement that abundant money lowers its value and raises prices.
- Analyses Mercado 1568 on money, exchange and trade, showing how his arguments advanced understanding of inflation.
- Evaluates the significance of these writers by comparing their insights with modern quantity-theory explanations and with non-monetary causes.
Common mistakes and how to put them right
Attributing a full quantity theory to Azpilcueta.
Put it right by presenting his argument as an early, partial insight rather than a complete model.
Treating Mercado as merely repeating Azpilcueta.
Put it right by showing his distinct focus on exchange, trade and commercial practice.
Assuming bullion imports alone caused all inflation.
Put it right by weighing harvest failure, population growth, taxation and coin debasement.
Exam tips
- Date and contextualise each writer precisely, linking 1556 and 1568 to the bullion debate.
- Quote or paraphrase a specific argument from each writer to show understanding rather than name-dropping.
- Balance the significance of their ideas against structural and real economic factors.
Try the lesson
The start of the Paper 3, Option 32: The Golden Age of Spain, 1474–1598 - 3 The price revolution and its impact, c1500–c1570: Gold and silver imports and the contemporary discussions on their contribution to inflation; the significance of the writings of Martín de Azpilcueta 1556, and Tomás de Mercado 1568. lesson, made from checked teaching notes for this specification point.
Have a go first
Which two sixteenth-century Spanish writers are noted for discussing the effect of American treasure on prices?
Listen
Bullion imports from the Americas rose sharply across the sixteenth century, especially after Potosí and Mexican silver production expanded from the 1540s–1550s. Contemporaries debated whether this inflow caused inflation. Martín de Azpilcueta, writing in 1556, argued that money is worth less where it is abundant, an early quantity-theory insight linking plentiful silver to higher prices. Tomás de Mercado in 1568 discussed exchange, trade and the effects of money supply on prices, stressing the role of commerce and the Indies trade. Their significance lies in moving beyond moral complaint towards economic analysis, though they did not isolate all variables. Assess how far bullion imports explain inflation alongside harvests, population and debasement. A strong answer earns marks for these points. Describes the scale and timing of gold and silver imports from the Americas and their concentration in Seville and Castile. Explains contemporary discussion of bullion as a cause of inflation, including sceptical and supportive voices. Analyses Azpilcueta 1556 as an early statement that abundant money lowers its value and raises prices. Analyses Mercado 1568 on money, exchange and trade, showing how his arguments advanced understanding of inflation. A common slip: Attributing a full quantity theory to Azpilcueta. Instead, presenting his argument as an early, partial insight rather than a complete model. Exam tip: Date and contextualise each writer precisely, linking 1556 and 1568 to the bullion debate.
Key words
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American bullion and the price revolution
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Early economic theory and quantity theory
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Trade, exchange and the Indies
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Contemporary debate and its limits
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See every definition
- American bullion and the price revolution
- Gold and silver imports from the Americas rose sharply across the sixteenth century, and contemporaries debated whether this inflow caused inflation.
- Early economic theory and quantity theory
- Martín de Azpilcueta argued in 1556 that money is worth less where it is abundant, an early quantity-theory insight linking plentiful silver to higher prices.
- Trade, exchange and the Indies
- Tomás de Mercado in 1568 discussed exchange, trade and the effects of money supply on prices, stressing the role of commerce and the Indies trade.
- Contemporary debate and its limits
- Their significance lies in moving beyond moral complaint towards economic analysis, though they did not isolate all variables.
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