markitect-main/examples/infospace-with-history/output/entities/increase-of-money-as-effect-of-prosperity.md

Increase of Money as Effect of Prosperity

Definition

The natural consequence of economic growth where increased annual produce requires greater money circulation. The increased produce naturally employs itself in purchasing additional gold and silver necessary for circulating the rest, making monetary increase the effect rather than cause of public prosperity.

Source Chapter

Book II, Chapter 3

Context

Smith's complementary argument to the previous entity, showing that monetary growth follows rather than leads economic development, refuting mercantilist concerns about money scarcity.

Economic Domain

Exchange

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