Inflation in the early modern Ottoman Empire and Europe

Abstract

This study investigates the rates and causes of price inflation in early modern Europe and the Ottomans. There are two leading causes of price inflation in this period. The first is the American silver, and the second is the debasements that states resorted to for revenue. Our study shows that debasements are the more important cause. Debasements have induced price increases ranging between two to five hundred-fold for different states. As for American silver, it has induced, at most, a four-fold increase in prices. Hence inflation was mainly caused by debasements and the underlying political factors.