How did the European economy change as a result of the discovery of the Americas?

The discovery of the Americas significantly transformed the European economy by opening new trade routes and resources, leading to the influx of precious metals, particularly gold and silver, which fueled inflation and increased wealth among European nations. It also stimulated the growth of mercantilism, as countries sought to exploit the New World’s resources, leading to the establishment of colonies and new markets. Additionally, the introduction of new crops, such as potatoes and maize, diversified European agriculture and improved food security, contributing to population growth. Overall, the encounter with the Americas marked a shift towards a more interconnected global economy.