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# Colonial Economic System Stability Mechanisms

## Definition

The processes and structures that maintain economic equilibrium in colonies, including market regulation, policy consistency, and institutional frameworks. Better stability mechanisms through balanced policies promote more sustainable economic development.

## Source Chapter

Book IV, Chapter 7

## Context

Smith examines stability mechanisms in different colonial economic systems, arguing that monopoly policies often create artificial instability through market distortions and political tensions. He contends that more open arrangements would promote greater stability through natural market equilibrium.

## Economic Domain

General Theory

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