Política monetaria y política fiscal en Castilla en el siglo XVII: un siglo de inestabilidades

The financial struggles that Castilla underwent during the second half of the 16th century forced the Crown to look for new ways of funding. The monetary changes encompassed the use of copper coins known as piezas de vellón. . Throughout the 17th century, there were 25 laws decreed altering in one way or the other the monetary value of the coins. These adjustments did not go unnoticed, having a direct impact on the monetary system creating instability and dramatic price fluctuations, on top of countless protests and rejections. The Government, conscious of the severity of the situatíon, made several attempts to resolve the imbalances, which only triumphed once the underlying fiscal problems disappeared. We see in this century co-ordination between monetary and fiscal policy in which monetary policy had to finance the deficit incurred by the fiscal authorities.