section_path: Economy/Economic history
section_name: Economic history
paragraph_text: Economic history
  
  As the capital city of the Spanish Empire from 1561, Madrid's population grew rapidly. Administration, banking, and small-scale manufacturing centred on the royal court were among the main activities, but the city was more a locus of consumption than production or trade, geographically isolated as it was before the coming of the railways.
  
  The Bank of Spain is one of the oldest European central banks. Originally named as the Bank of San Carlos as it was founded in 1782, it was later renamed to Bank of San Fernando in 1829 and ultimately became the Bank of Spain in 1856. Its headquarters are located at the calle de Alcalá. The Madrid Stock Exchange was inaugurated on 20 October 1831. Its benchmark stock market index is the IBEX 35.
  
  Industry started to develop on a large scale only in the 20th century, but then grew rapidly, especially during the " Spanish miracle " period around the 1960s. The economy of the city was then centred on manufacturing industries such as those related to motor vehicles, aircraft, chemicals, electronic devices, pharmaceuticals, processed food, printed materials, and leather goods. Since the restoration of democracy in the late 1970s, the city has continued to expand. Its economy is now among the most dynamic and diverse in the European Union.