Yup I just read it and the gold and silver did cause inflation but what was the negative effect of the foodsFor the essential, you don’t need to read all the entry, just this part:
“[…]However, the large volumes of precious metals from America led to inflation, which had a negative effect on the poorer part of the population, as goods became overpriced. This also hampered exports, as expensive goods could not compete in international markets. Moreover, the large cash inflows from silver hindered the industrial development in Spain as entrepreneurship seems to be indispensable.
Domestic production was heavily taxed, driving up prices for Aragon and Castile-made goods, but especially in Castile where the tax burden was greater. The sale of titles to entrepreneurs who bought their way up the social ladder (a practice commonly found all over Europe), removing themselves from the productive sector of the economy, provided additional funds.
The overall effect of plague and emigration reduced peninsular Spain's population from over 8 million in the last years of the 16th century to under 7 million by the mid-17th century, with Castile the most severely affected region […]”
Pardon me about the previous comment about the gold coming also from North America, but here I find odd that many users from the USA refer to the “Mexico” as South America. It is like in Europe a person from Norway referring Denmark as South Europe.