markitect-main/examples/infospace-with-history/output/entities/exportation-of-gold-and-silver-as-effect-of-declension.md

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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