ext for this class, A History of Modern Europe, is far more charitable in its assessment than Lachmann. John Merriman notes that not only did the colonial empire help to expand Spain's economy, but that Spain was also a big contributor to the European trading boom. This was especially true of the Castilian region of Spain with its rapid growth in wool, mining, and agriculture. Castile, being one of the most fertile regions in Spain, saw heavy innovation in response to economic growth; for example, farmers started using terracing techniques on the hillsides and planting perennials to increase cultivation. With the increase in demand for textiles, farmers also started planting flax, hemp, and mulberry trees. Irrigation works and processing plants were also built to help create market ready commodities. Additionally, unlike other countries in Europe, nobles were actively involved in the economy, engaging in everything from wholesale to building storage and processing facilities for their goods. This included flourmills, tanneries, and wine cellars with adjacent taverns. But even after citing the obvious innovation that occurred in Spain, Merriman, too, blames the merchants for failing to modernize:
             Spain's preeminence did not survive the end of the seventeenth-century economic crisis, however. Its merchants lacked the flexibility shown by the English and the Dutch to adjust to varying demand for colonial products such as pepper and to create new trading opportunities. Furthermore, merchants in Amsterdam and London, not those in the Spanish city of Seville, expanded trade by using innovative commercial techniques.
             Something about Merriman's assessment of Spain's failure to adjust does not ring true, especially in light of the innovations that he credits the Spanish merchants with originally. Perhaps the real reason for the Spanish economic bust can be found by taking a closer look at other factors th...