This book incorporates the rich literature on the history of the fiscal organization and financial dynamics of the Spanish empire within the broader historical debates on rival European imperial states from 1760 to 1810. The focus is on colonial Mexico because it served as a fiscal and financial submetropolis that ensured the capacity of the imperial state to defend itself in a time of successive international conflicts. Throughout the reign Charles IV, the finances of the Spanish state began to sink. This collapse was caused by the enormous expense of waging successive wars in the Americas and Europe. In each war, colonial Mexico was a most important source of resources for the Crown, but these demands gradually outstripped the tax base of the viceroyalty despite the extraordinary silver boom of the late eighteenth century. The bankruptcy of the Spanish monarchy and its empire was the inevitable consequence.

Awarded the A. H. Jones Prize from the Economic History Association of the United States for 'Best book on the Economic History of North America' published in 2006/2007

Winner of the Jaime Vicens Vives Prize for best book on Latin America and Spain published in 2007/2008, awarded by the Spanish Economic History Association

Review of the hardback:'Bankruptcy of Empire, an amplified version of a 1999 book, is a compelling contribution to the expanding body of research on the economy of New Spain in the eighteenth century and a stimulating addition to the fiscal historiography of the Spanish empire, in particular the monarchy's inability to generate resources in line with the requirements of its foreign policy. … Marichal has made a sterling job of synthesising a great deal of statistical and qualitative data in numerous tables, three appendices and providing a useful index. … This book asks big questions. It is a valuable addition to modern economic history, and will be rewarding for more than its intended audience.'

Source: Financial History Review

'In what by any standards is a major work, Marichal proves the extraordinary influence of Mexican silver in pan-American and European affairs at the turn of the nineteenth century.

Source: The Journal of Latin American Studies