ABSTRACT
The Hapsburg state accumulated and mobilized resources for defending the Catholic faith and molding the moral character of its subjects, making membership in the church the key to acceptance in the political community. The change of century brought about a change of dynasty and a redefinition of the state. While the fundamentals of the teleocratic state went unquestioned, a further strengthening of royal authority and a partial secularization of state and society took place. Currency manipulations, expropriations, fraudulent bankruptcies, and forced renegotiations of loans led ultimately to a crisis of confidence on the part of potential moneylenders and Spanish subjects as to the state's financial commitments. The state was able to increase public revenues while leaning towards preserving the social status quo. Spain's various kingdoms and constitutional arrangements were institutional obstacles to the Bourbons' project of absolute monarchy.
