... Price - Specie- Flow Mechanism : A Minor Mystery Resolved F. Petrella Source : Southern Economic Journal . Vol . 34 ( 3 ) , January 1968 , pp . 365-74 . Introduction In his classic work , Studies in the Theory of International Trade ...
... price - specie flow mechanism . Trade is determined according to the principle of comparative advantage , as in Ricardo's famous example of wine and cloth trade between England and Portugal . However , if a country does have an absolute ...
... price - specie - flow mechanism actually happened . Economists , accustomed to thinking of the Facts of History , may be surprised ; it will not surprise historians , hardened to the ubiquity of the Myths of History . The intellectual ...
... price-specie-flow mechanism. Let us construct a drastically simplified version of the model. 2Indifference map is homothetic, when the slope of indifference curves remain unchanged by any proportional changes in the quantities of all the ...
... price - specie - flow mechanism that equilibrates national balances of payments and international price levels . In monetary theory proper , Hume vivifies the Lockean quantity theory of money with a marvellous illustration ...
... Price-Specie-Flow Mechanism The second observation that Hume makes in the conclusion of “of Money” concerns a more detailed analysis of the determination of prices in a monetary economy. on the one hand, one has to observe the volume of ...
... PRICE - SPECIE - FLOW MECHANISM The mercantilist preoccupation with achieving a surplus on the balance of payments was faulted by Adam Smith for neglecting the basic source of the gains from trade : the increase in consumption in both ...
... price - specie - flow mechanism of balance of payments adjustment 27.7.2.1 The model The classical price - specie - flow mechanism can thus be described : a balance of payments surplus causes an inflow of gold in the surplus country ...
... price - specie - flow mechanism before turning to the MABP . 12.2 The Classical ( Humean ) Price - Specie - Flow Mechanism This theory can be summed up as follows : under the gold standard ( hence with fixed exchange rates ) a surplus ...
... price - specie flow mechanism necessarily glosses over important issues , for example , the fact that notes were sometimes issued by private rather than central banks . While complicating the analysis , such nuances would not alter its ...