Price–specie flow mechanism
id:
price-specie-flow-mechanism-287-11212161
title:
Price–specie flow mechanism
text:
The price–specie flow mechanism is a model developed by Scottish economist David Hume (1711–1776) to illustrate how trade imbalances can self-correct and adjust under the gold standard. Hume expounded his argument in Of the Balance of Trade, which he wrote to counter the Mercantilist idea that a nation should strive for a positive balance of trade. In short, the "increase in domestic prices due to the gold inflow would discourage exports and encourage imports, thus automatically limiting the amo
brand slug:
wiki
category slug:
encyclopedia
description:
Economic model of trade balance
original url:
https://en.wikipedia.org/wiki/Price%E2%80%93specie_flow_mechanism
date created:
date modified:
2024-04-25T12:03:58Z
main entity:
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image:
fields total:
13
integrity:
14