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# Colony Economic System Stability Mechanisms

## Definition

The processes and institutions that maintain economic stability in colonial
settings, including market mechanisms, regulatory frameworks, and institutional
arrangements that prevent excessive volatility and promote sustainable growth.

## Source Chapter

Book V, Chapter 3

## Context

Smith discusses the mechanisms that contribute to economic stability in
colonial economies, arguing that natural market processes are often more
effective than artificial regulatory interventions.

## Economic Domain

Regulation

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