Domestic Policy:Philip III

                               DOMESTIC POLICY OF PHILP III

As soon as he acceded to the throne, the monarch let Francisco de Sandoval, Marquis of Denia, exercise power and named Duke of Lerma in 1599. This was not exercised by virtue of an official position, but through the friendship and trust granted to him by the king.

• Economy: Economically there were several problems. The adoption of the fleece coin (an alloy of silver and copper) on a large scale for transactions in the interior of the country faced the problem that since 1599 manipulations were carried out that consisted of removing silver from the fleece coin, and even removing weight from the currency, to speculate later with that metal. The fleece coin would not stop devaluing against the silver real. This evil would last until the 1680s. On the other hand, the avalanche of precious metals coming from America was such that there was an inflation that in the first half of the seventeenth century would reach 107%. On the other hand, Philip III had found almost empty coffers because of the enormous cost of wars. 
• Expulsion of the Moriscos (1609 to 1610):  In 1609 the expulsion of the Moors from Spain was decreed for the following reasons: 
  
  
  
• The attitude of unconvinced Christians, in a State defending Catholicism.
• His possible alliance with the Turks and Berbers who constantly attacked the coasts of the Levant.
• Its unpopularity among the population.
• The need for the State to control its wealth and values.
• Between 1609 and 1610 they left the peninsula.