Deflation? It caused massive inflation, but also a monetization of what had earlier been a barter economy in large parts of Europe.

Since precious metals were in essence money during this time, the huge influx of silver from the New World caused a massive (by the time, in modern terms it was not very high) inflation of 1-1,5% yearly for about 150 years, in what is commonly referred to as the "price revolution". The increase in currency was spread around Europe due to the Spanish Empire hiring mercenaries in the Netherlands and Italy to fight their wars there. Eventually even the most far-flung economies of Europe, such as that of Sweden, held enough currency to move away from a barter economy. By the 17th century, Swedish peasants were still paying a fixed amount of grain as their tax - but the actual payment was made in coin (ie peasant Olsson owed 20 barrels of rye, which could be worth 32½ daler copper, and thus he paid in coin) instead of goods.

In the long run, the most productive economies were the ones most affected by the increase in currency. While the Spanish held an advantage for a while in having reliable and large source of currency, they imported goods (both regular and luxury) and spend the rest of the money on mercenaries and war supplies. Swedish iron and copper industry and cannon foundries, English and Dutch cloth industry and shipbuilding and French agriculture benefitted, invested, became more specialised and more effective.

By the end of the "price revolution", the French, Dutch and English had become substantially richer, while the Spanish had gone bankrupt more than one time.

While I can't fully flesh out the question for you, I can provide some context and hopefully part of an answer - that is, the Spanish colonisation of central and southern America was largely driven by silver deposits, which were exchanged with the Indian subcontinent and South East Asia via trade routes across the Pacific.

For this reason, potential effects might have been limited as wealth was flowing directly through the continent to Asia.

In Adam Smith's work On the Wealth of Nations he goes into almost exhaustive detail about exactly this. To summarize, the value of silver went down, but not nearly as much as many contemporaries expected. Because even though there was much more silver, there were also new markets opened for silver due to improved trade routes, and the colonization of the new world. The section in question is Digression concerning the Variations in the Value of Silver during the Course of the Four last Centuries