The early 17th century was a glorious time for the Spanish Empire under Habsurg Rule. Spain was at the height of its power, arguably the world's greatest power at the time.
The age has also been heralded as the "Age of Expansion" and was also considered to culturally to be Golden Age of Spain. However, despite this glorious image, Spain still had its share of problems. During the reign of Philip III (1598-1621), the government was extensively weakened. Philip III appointed the corrupt Duke of Lerma to oversee the country's matters which further weaked Spain politically and economically. Within nine years of Philip III's reign the Spanish government was bankrupt. Irrespective of this however, Spain would continue on as the dominant power in Europe due largely to the disorganization of the other European countries.
Philip IV, the son of Philip III, restored some of Spain’s lost prestige using an aggressive military campaign. Philip III helped Spain to reaffirm its position as the strongest world power during his reign from 1621-1640.
One of the major themes of the era was that life and art were an illusion. The play "Life is a Dream" which was published around 1636 is considered by many to be the literary equivalent of Las Meninas.