Price revolution is a term used to describe a series of economic events from the second half of the 15th century to the first half of the 17th century. The price revolution refers most specifically to the high rate of inflation that occurred during this period across Western Europe. Prices rose on average roughly sixfold over 150 years. This level of inflation amounts to 1–1.5% per year, a relatively low inflation rate for the 20th century standards, but rather high given the monetary policy in place in the 16th century. Generally it is thought that this high inflation was caused by the large influx of gold and silver from the Spanish treasure fleet from the New World, especially the silver of Bolivia and Mexico which began to be mined in large quantities from 1545 onward. Specie flowed through Spain increasing Spanish prices and then spread over Western Europe as a result of Spanish balance of payments deficit. This enlarged the monetary supply and price levels of many European countries. Combined with this influx of gold and silver, the growing population and urbanization perpetuated the price revolution. According to this theory, too many people with too much money chased too few goods.

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