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Mila [183]
3 years ago
8

What were some specific responses to the price revolution?

History
1 answer:
katen-ka-za [31]3 years ago
5 0

The excess of precious metals in Europe has caused the continent to develop enormous inflation. Such process is called “Price Revolution”. Thus, they posted prices between countries, so that it would not fluctuate.

The simple accumulation of precious metals does not make the country a power. As a result, Portugal and Spain restricted their use within Europe and asked the other powers to strengthen this hoarding practice.

This means that when you have a large amount of money in circulation, and the production of goods does not follow, we have an inflationary process, because money becomes less valuable in relation to goods.

We now passed to Germany in the 1920s, the country had lost the First World War and was forced, through the Treaty of Versailles, to pay heavy reparations to the winners, as the national industry was in shambles, and to make matters worse, France occupied the Ruhr Valley region, the most industrialized area in the country, rich in iron and coal, the easiest way found by the Weimar Republic to pay its debts was to print money, a lot of money, this made, for example, things doubled in price every three days.

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