Reason The arts and litreture flourished in spain during its golden age?

Answer 1

This is a very interesting question. There are several major reasons but I thing some of the more important ones are:

Politically there was lots of Dynastic exchanges between European families. An example of such exchange can be the marriage between King Philip IV of Spain and Margarita of Austria. This provided cultural bridge in exchange between Northern artists with their Southern counterparts.

Courts also competed with each other not only in military prowess but in artistic lavishness as well. In Italy especially city-courts tried to outdo each other with the amount of money that they spent on famous artists and pieces of art. And as one might see Spain because of its geographic position was highly influenced by Italian standards (especially after Spain conquered several South-West Italian cities and exported artists and works of art).

Due to the change from Scholasticism to Humanism artists were able to be more "expensive" in their expression of feelings and emotions. The emphasis changed from symbolism to more realistic depictions of human emotions. A good example would be to compare religious paintings from Medieval and Renaissance periods. That was true all across of Europe including Spain.
http://www.mos.org/sln/Leonardo/PaintingBeforetheRen.html
http://www.gwctc.commnet.edu/artdept/arthis02/ren/early_p/mantegna_crucifixion.jpg


Also another interesting aspect is influence of Moorish and Jewish cultures on Western standards. Spain was sort of a melting pot for Western and Moorish cultures.