In the 17th century, there was an economic idea called mercantilism, that usually went along with absolutism. In a mercantilist society, the economy is run and regulated by the government. There may be special privileges and monopolies given to those the monarch favors, and exports are encouraged while imports are discouraged and may have bans or tariffs. 17th century France is an example of a mercantilist society that also had guild rules for certain crafts, which discouraged competition in business and made it hard for people to get into the trade.
The monarch in 17th century France was the infamous Louis XIV. His high taxes, absolutist tendencies, and beautiful place with a resplendent court have made him renowned. But one of the things he used the taxes for the most were his many wars. His army was becoming larger as warfare became more professionalized and he sent his seemingly invincible army on many campaigns. He waged multiple wars in the Low Countries (what is today the Netherlands) to gain defenses and territories, with his ultimate goal to reach the Rhine river. Some of these wars were held up by vague claims to foreign thrones and others for purely expansion purposes. France became a leading power in Europe with its wars focusing on aggressiveness with its large standing army. This was about to change however in the War of Spanish Succession.
The War of Spanish Succession centered around who would succeed childless Charles II of the Spanish empire, which not only included Spain but also the Netherlands, Italian territories, and territories in the new world.. France had their candidate, Phillip of Anjou, and the Holy Roman Empire had their candidate. Louis XIV attempted to negotiate some partition treaties, but both Charles II and the Holy Roman Emperor were against this. When Charles died his will stated that Phillip of Anjou was heir to the throne, though the HRE refuted this by saying that Charles was not in his right mind when he wrote it. Phillip was sent to Spain and was crowned emperor, supported by the Spanish people, but immediately Phillip gave special trading privileges to France that had once belonged to other countries. This had been Europe’s fear, that France would be the sole trader in the Spanish empire, so England, the Dutch Republic, and Austria / The Holy Roman Empire formed an alliance against France. The war would last from 1701 to 1714 with France being totally devastated from 1709. The most important battle of the war was the battle of Blenheim, which was a French defeat. Eventually, Louis could not raise more taxes because his people were starving, aggravated by a bad harvest and a harsh winter. Unable to wring any more taxes out of his subjects he tried inflation and melted down his silverware to be sold for war costs. The allies even invaded France itself but somehow France held on and managed to dispel the invaders. In 1715 the war ended with the Peace of Utrecht. Phillip V remained King of Spain, but Spanish territories were divided up amongst the other participants in the war. As for Louis XIV, he lost most of the territory he had gained in his previous campaigns and had a broke and thoroughly exhausted France when he died in 1715.