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# Increase of Money as Effect of Prosperity

## Definition

The natural consequence of economic growth where increased annual produce
requires greater money circulation. The increased produce naturally employs
itself in purchasing additional gold and silver necessary for circulating the
rest, making monetary increase the effect rather than cause of public
prosperity.

## Source Chapter

Book II, Chapter 3

## Context

Smith's complementary argument to the previous entity, showing that monetary
growth follows rather than leads economic development, refuting mercantilist
concerns about money scarcity.

## Economic Domain

Exchange

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