Colonial Latin America
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. In the context of Spain and Portugal during the colonial period, inflation was significantly influenced by the influx of precious metals, especially gold and silver, from their colonies in the Americas. This surge in wealth led to a rapid increase in money supply, which, while initially stimulating economic growth, eventually caused rampant inflation that destabilized their economies.
congrats on reading the definition of Inflation. now let's actually learn it.