2.8. Further Reflections on the Increase and Decrease of Money in a State

Update: 2014-12-01

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Increases in the supply of money from a balance of trade eventually causes prices to rise. This in turn puts pressure on domestic producers and increases imports. The result is that the balance of trade is reduced and eventually is negative. This is Cantillon’s price specie-flow mechanism which demonstrates the reasons for the tendency for equilibrium in international monetary flows. The balance of trade can result in economic power, but this also causes the economy to lapse into luxury and decline.

From Part 2: Money and Interest. Narrated by Millian Quinteros.

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In Channel

3.8. The Refinements of Credit of General Banks

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3.7. Further Explanations and Enquiries as to the Utility of a National Bank

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3.6. Banks and their Credit

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3.5. The Augmentation and Diminution of the Denomination of Money

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3.4. The Variations in the Proportion of Values with Regard to the Metals Used as Money

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3.3. Further Explanations on the Nature of Exchanges

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3.2. On Bills of Exchanges and their Nature

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3.1. Foreign Trade

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2.10. The Causes of Increases and Decreases of the Interest Rate on Money in a State

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2.9. Interest on Money and its Causes

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2.8. Further Reflections on the Increase and Decrease of Money in a State

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2.7. Continuation of the same subject

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2.6. The Increase and Decrease of the Quantity of Money in a State

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2.5. The inequality of the circulation of hard money in a State

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2.4. Further Reflection on the Rapidity or Slowness of the Circulation of Money in Exchange

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2.3. The Circulation of Money

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2.2. Market Prices

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2.1. Barter

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1.17. Metals and Money, and especially of Gold and Silver

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1.16. The more Labor there is in a State, the more the State is Judged Naturally Rich

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2.8. Further Reflections on the Increase and Decrease of Money in a State

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2.8. Further Reflections on the Increase and Decrease of Money in a State

Richard Cantillon

2.8. Further Reflections on the Increase and Decrease of Money in a State