The Local impact of a Global Production. The Royal Mint of Mexico and its Suppliers, 1732-1821

Abstract

This article discusses the spillover effects of the expenditure of the Royal Mint in the capital of New Spain, due to the construction of facilities, acquisition of machinery and purchase of inputs such as fuel, draft animals and non-precious minerals, as copper. The author argues that the establishment of direct government administration, in 1732, involved the introduction of modern principles of hiring and supervising contractors. Finally, the study proposes that the local impact of public spending is an issue that may present interesting possibilities for the history of economics in pre-modern societies.