From our old friend Mike Liccione comes an important clarification on the Latin Catholic notion of “created grace” –
There certainly were Catholic theologians in the later Middle Ages who were “nominalists,” and it is certainly true that many of those nominalists treated the question of grace in more or less the way janotec criticizes. But not all scholastics were nominalists by any means. The via moderna of that period in Catholic theology, in my opinion, did tend to go wrong as janotec says; and that was a key precursor to Protestantism’s essentially forensic account of justification. But some Catholic theologians were Franciscans and Thomists who were anything but followers of that path. Indeed, in the hands of those more traditionally-minded theologians, the very concept of “created grace” was intended largely to explain how justification and sanctification consisted in what we’d now call an “ontological” change in the human soul, in such wise that the soul could become a “partaker of the divine nature” without becoming God-by-nature. In that respect, use of the concept of created grace had the same goal as that of St. Gregory Palamas when he expatiated on the distinction between the divine “essence,” which cannot be shared, and the divine “energies” or actions ad extra, which can and indeed must be shared if we are to have the life God destines us for—the “life eternal” otherwise known as theosis or “divinization.” As I see it, the chief difference between the older, more robust Catholic theology postulating “created” grace, and the Palamite view that the divine energies are “uncreated” and thus God, is that the Catholics used the term grace not merely for its primary referent, which is indeed the Uncreated himself insofar as he communicates his life to us, but also for the instruments he uses to communicate his life to the human person, and especially for some of the effects of that communication within the human person.