Many economists believe that Hume’s price-specie-flow mechanism proved that Mun’s favorable balance of trade doctrine would not work. Explain the mercantilist doctrine and Hume’s critique of it. Do you believe Hume was right? Defend your answer.
The economics of the mercantilist school was concerned with how the powerful nations of Western Europe could pursue policies to increase their wealth and power at a time of expanding trade and colonialism. The mercantilists argued the following three interrelated ideas. First, that the wealth and power of the kingdom could be increased by enlarging […]