The Spanish monarchy as a contractor state in the eighteenth century: Interaction of political power with the market

Abstract

The concept of the contractor state has been formulated to underline the existence of a necessary relation between state and private markets in the eighteenth century. Although all states acted as contractors in this period, it is necessary to clarify the relationship between the rulers and the market. Significant differences can be observed between parliamentary governments, which were comfortable with this situation, and the absolute monarchies, which constantly tried to interfere. The Spanish monarchy belongs to the second type, as this article tries to prove. This is a study about such a situation’s relevance and consequences with regard to the provision of uniforms for the army in particular, and for Spanish economic growth in general.