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

Real Value of Silver

Definition

The purchasing power of silver measured by the quantity of goods and services it can command, which may fluctuate independently of its nominal monetary value.

Source Chapter

Book IV, Chapter 5

Context

Smith argues that bounties degrade the real value of silver by forcing up the nominal price of corn, thereby reducing silver's ability to purchase other commodities in the home market.

Economic Domain

Exchange

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