Editing Price revolution (section)

=== Republic of Genoa ===
Unlike many other states of the period, the [[Republic of Genoa]] gambled the majority of its economic interest on the Spanish monarchy—bankers invested their money in the crown and farmers of Spanish revenue, while Genoa's merchants and nobles settled in Spain (Madrid, Seville, [[Kingdom of Naples]] and [[Kingdom of Sicily|Sicily]]) marrying local nobility and monopolizing majority of the trade. As long as [[New Spain]] was sending silver and gold to the {{lang|es|[[consulado de mercaderes]]}} in Seville, Genoa could flourish. Genoa became a large credit market as the capital of Italian cities was all drained towards Genoa.<ref name=Fratianni>{{cite book |last1=Fratianni |first1=Michele |last2=Franco |first2=Spinelli |title=Did Genoa and Venice Kick a Financial Revolution in the Quattrocento? |place=Vienna |publisher={{lang|de|[[Oesterreichische Nationalbank]]}} |year= 2006}}</ref>

A multitude of small investors, Genoese and others, obtained from the Crown long-term securities ({{langx|es|juros de resguardo}}) as collateral for their loans. Also short-term loans known as {{lang|es|[[asiento de Negros#Asientos|asientos]]}} could be converted into long-term {{lang|es|juros}}.<ref>{{citation |url=https://core.ac.uk/download/pdf/322623625.pdf |author=J Conklin |date=1998 |title=The Theory of Sovereign Debt and Spain under Philip II }}</ref><ref>{{citation |url=http://people.bu.edu/chamley/history/castilla/EHR12013.pdf |title=Debt policy under constraints: Philip II, the Cortes, and Genoese bankers |author1=Carlos Álvarez-Nogal |author2=Christophe Chamley |page=2 }}</ref> The contracts specified that these securities would be sold if the Crown did not repay the loans. In essence, the Genoese bankers had worked out an [[interest rate swap]]. Furthermore, the Crown sold silver spot in Spain to the Genoese in exchange for future delivery of gold in [[Antwerp]], where the gold was used to pay Spanish troops fighting in the Low Countries. Genoa benefited from the price revolution as they enjoyed the advantage of "increasing returns to scale in international financial services". Genoa during the price revolution was a snapshot of global finance at its best.<ref name=Fratianni/> Unfortunately, the [[decline of Spain]] in the 17th century brought also the decline of Genoa (due to the Spanish crown's frequent bankruptcies); Genoa's merchant houses particularly suffered. In 1684, Genoa was bombed by a French fleet as punishment for its long alliance with Spain. As a result the Genoese bankers and traders made new economic and financial links with [[Louis XIV]].