26 lines
662 B
Markdown
26 lines
662 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-05 -->
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# Degradation of Silver
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## Definition
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The reduction in silver's purchasing power relative to other commodities,
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occurring when artificial policies like bounties increase the nominal price
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of goods without increasing their real value.
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## Source Chapter
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Book IV, Chapter 5
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## Context
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Smith argues that bounties degrade silver's value by forcing up the nominal
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price of corn, which serves as the regulator of all other commodity prices,
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thereby reducing silver's ability to purchase home-made goods.
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## Economic Domain
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Exchange
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---
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