Ways to control silver/gold inflation?

In example for early modern Spain, their economy crashed hard due to (or partially because of) the huge influx of precious metals. In a situation like so, would it be beneficial if there was a way to clamp down on the flow of commerce in those sectors, introduce the gold/silver gradually? And if so, was there any methods invented for that very way? Any councils or so?
 
Actually, it seems that precious metals didn't make it to European coinage before the XVIIIth century, most of gold and silver being used as such in trade or thesaurisation in banks.
These metals probably played a role in the general inflation, but not directly and more broadly on a continental scale (possibly, for exemple, with the influx of precious metals in England as well). The importance and consequences of systematical endebtment (while compensated by the arrival of precious metals and their thezaurisation by banks) should be taken in account there as a cause, rather than just a consequence, of the crisis.
Eventually, but that's a personal opinion, the predatory speculation (would it be fiscal or commercial) on production might have led to the collapse of agricultural production in the late XVI/XVII century with obvious consequences on prices.
 
The only way to avoid inflation when introducing more of a currency, is by making sure you have an expanding economy. If your economy grows, you need more currency.

That or possibly saving the currency. As in not spending it, thus keeping it out of circulation. Indefinately (well as long as the economy does not grow).

At least that is what I remember from my economy lessons.
 

Lusitania

Donor
What we had in Europe and middle east was not gold inflation but gold and silver depreciation.

The value of any commodity including gold and silver is based on the scarcity of the commodity. Now historically currencies for a long time were based on the nations ability or possession of gold and silver. So a trading nation that received gold and silver or a nation that had access to reserves of gold (mines) was considered strong and powerful. Spain's luck in controlling high valued trade items such as vanilla and access to gold and silver sources in the world meant that the Spanish crown and nation became awash with gold and silver currency and instead of saving it they went about spending it on variety of project be they political or military (as well as infrastructure). The increased supply of gold and silver over the natural ability of the countries economy to absorb it leads to the nations currency to appreciate, this causing inflation.

On the other side the appearance of abundance of gold and silver resulted in people being courted by the Spanish be they political or military to demand larger payment for their support. Thus overnight the amount of gold required to equip an army or hire mercenaries seemed to jump.
This abundance of gold and silver led to the increase of inflation or better yet the depreciation of the value of the gold and silver. This put those countries without strong economies or sources of these precious metals to see the value of their wealth decrease. Causing them to spend greater quantity of metal to attain the same service or goods they used to. Middle East and Ottoman Empire were especially affected by this.

As mentioned before the quantity of gold and silver far surpassed the growth of European and Middle East economies which could of taken some of the momentum away from the depreciation of gold and silver. For a growing economy requires an ever increasing amount of currency which at time was either gold and silver. Lack of gold and silver limits the growth of the economy and also leads to inflation and deprecation in the value of the currency. Here we have the opposite too much gold and silver.
 
Certainly Spain bought stuff from other countries, esp. the Netherlands, who became in fact richer than Spain. Shouldn't the Dutch have suffered inflation as well then?
 

Lusitania

Donor
Certainly Spain bought stuff from other countries, esp. the Netherlands, who became in fact richer than Spain. Shouldn't the Dutch have suffered inflation as well then?

Inflation in the value of the goods happened, the amount could of been reduced by the increase in production or availability of goods. Due to its strong manufacturing and trade capabilities the $$ from Spain strengthened the trading companies allowing them to build more ships and hire more sailors to continue their challenge to the Spanish. Every country's gold value decreased no matter who they were. The amount a gold coin could buy decreased and people needed more gold to buy the same thing they used to prior to the arrival of the Spanish gold.
 
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