markitect-main/examples/infospace-with-history/output/entities/export-of-gold-and-silver-prohibition-effects.md

Export of Gold and Silver Prohibition Effects

Definition

The economic consequences of government restrictions on the export of precious metals, which often prove ineffective and can create unintended distortions in trade patterns. Such prohibitions typically fail to prevent the movement of gold and silver to where they have the highest value.

Source Chapter

Book IV, Chapter 6

Context

Smith argues that prohibitions on exporting gold and silver are generally ineffective because these metals will always find their way to markets where they command the highest prices. He uses this point to support his broader argument that trade restrictions generally fail to achieve their intended purposes.

Economic Domain

Regulation

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