markitect-main/examples/infospace-with-history/output/entities/degradation-of-silver.md

Degradation of Silver

Definition

The reduction in silver's purchasing power relative to other commodities, occurring when artificial policies like bounties increase the nominal price of goods without increasing their real value.

Source Chapter

Book IV, Chapter 5

Context

Smith argues that bounties degrade silver's value by forcing up the nominal price of corn, which serves as the regulator of all other commodity prices, thereby reducing silver's ability to purchase home-made goods.

Economic Domain

Exchange

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