EE 10.3 - QE and inflation Flashcards
Chapter 10.3 - Inflation
inflation
What policy made inflation worse in England?
Debasement
How much had prices risen from 1500 to the 1560s?
198%
Who did the public blame for rising prices?
The greed of individuals - ‘greedy gulls’
How did QE initially attempt to deal with inflation?
By revaluing the coinage
Why did the revaluing of the coinage not help with bringing down inflation?
- Little confidence in the coins
- To afford it the Privy Council had to raise loans in Antwerp - fall in value of the pound
- Traders charged as much or more in the new money as they had charged in the old
How did the government attempt to solve the problem?
By reducing imports and enforcing laws about what people could wear to cut down on the importing of luxury materials
What did the Lord Treasurer, the Marquis of Winchester, tell the Council about inflation?
He told the council that they did not know what they were doing
What did the government enforce to control prices?
- Fasting in Lent
- The observance of both Wednesday and Friday as ‘fish days’
When did Wednesday become a fish day?
1563
What did QE forbid in times of rising prices?
The export of grain
What were the clergy told to preach about when there was a poor harvest in 1586?
The evils of hoarding food and to pray for better weather
