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Specie Export Prohibition Effects

Definition

The economic consequences of laws preventing the export of gold and silver, including effects on trade balances, monetary circulation, and international commerce. Smith argues that such prohibitions are typically ineffective and harmful.

Source Chapter

Book IV, Chapter 2

Context

Smith examines the effects of laws prohibiting the export of precious metals, arguing that such restrictions are both ineffective and harmful to trade. He suggests that market forces naturally regulate the flow of specie across borders.

Economic Domain

Exchange