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As a result, huge amount of gold and silver poured in to Spain. At the same time, there was an increase in population, and there was a huge demand for food. Spanish colonies also demanded for food, so the demand for food increased even more. Consequently, Spanish product could not compete in international market. Then we got inflation and a decline in Spanish economy. Price revolution stabilized Spanish economy, which was lead by peasants.
Netherlands established west and East Indies Company, which was a stock company. Furthermore, you could spend all your money on ship which goes to the new world, and brings back you back stuff that worth a lot in Europe...
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