Philip has clear intentions to try and …

Years: 1628 - 1628

Philip has clear intentions to try and control the Spanish currency, which had become increasingly unstable during the reign of his father and grandfather, but in practice, inflation has soared.

Partly this is because in 1627 Olivares had attempted to deal with the problem of Philip's Genoese bankers —who had proved uncooperative in recent years—by declaring a state bankruptcy.

With the Genoese debt now removed, Olivares hopes to turn to indigenous bankers for renewed funds.

In practice, the plan is a disaster.

The Spanish treasure fleet of 1628 is captured by the Dutch, and Spain's ability to borrow and transfer money across Europe declines sharply.

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