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# Exportation of Gold and Silver as Effect of Declension

## Definition

The consequence rather than cause of economic decline, where diminishing
annual produce leads to reduced domestic circulation of money, forcing its
exportation to purchase consumable goods abroad. This exportation continues
for some time to support consumption beyond the value of domestic produce.

## Source Chapter

Book II, Chapter 3

## Context

Smith refutes the mercantilist view that gold and silver export causes
economic decline, arguing instead that it is the effect of declining
production and can even temporarily alleviate the misery of declension.

## Economic Domain

Exchange

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