Introduction

In this chapter I shall be addressing the topic of Spain in the crisis of the seventeenth century, from the vantage-point of the periphery. Thus I shall probe the nature of the Spanish Empire and its monarchy and the role played by Spanish America as set against this backdrop. Spain's decline in the crisis of the seventeenth century was beyond doubt: economic weakening, population loss, administrative problems, military defeats, and the end of the dream of a global monarchy, that is, of Spain's hegemony over the rest of Europe. The evidence is overwhelming: Spanish power and influence had shrunk since the glorious previous century. These are the questions that I shall be raising:

• (i) It is well-established that since 1620 Europe had entered a period of economic recession that affected all corners of the European continent without exception, and thus the question arises: to what extent was Spain's situation different from that of other European nations? In other words, how did this continental crisis affect Spain? What impact did it have on migration (including emigration) and demography, the decline in production, inflation and other monetary problems such as bankruptcy, and the depletion and demoralization of its military forces?

• (ii) How was it that such a severe crisis did not lead to profound transformations in Spain? Why did this crisis not sink Castile into insignificance (as occurred, for example, in Italy and, in particular, Venice) or drive its monarchy to collapse or dismemberment?

Given the sheer number of challenges, the resilience of the Spanish Empire does not cease to impress. How was it possible, for example, that, in 1700, the thirteen-year War of Spanish Succession did not lead to its demise? (This question was raised by John Lynch in 1969). Regardless, the empire survived and its permanence should cast light on still-unclear happenings during the seventeenth century and on the very nature of the Spanish Monarchy. Given the complexity of the topic, I have organized the discussion into three different parts. The first delves into the peculiar consequences that the incorporation of America had for the Spanish Empire/Monarchy. The second addresses the seventeenth-century crisis seen from an American perspective and its relationship with the metropolis.