The Spanish debasement of the maravedi (17th century) illustrates the classic empire decline pattern: military overextension (Habsburg wars) → fiscal pressure → coin debasement → inflation → loss of economic competitiveness. Silver from the Americas (New World inflows) initially fueled Spanish dominance but also caused inflation (Price Revolution, ~1550–1650). When silver inflows slowed, Spain debased its own currency. The sequencing: resource windfall → fiscal expansion → military overcommitment → debasement when windfall ends.