Price Specie Flow Mechanism

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The Price-specie-Flow Mechanism is a logical mechanism created by David Hume which dispeled the Mercantilist (1700-1776) notion that a nation can have a continuously favorable balance of trade. Under the rules of the Gold standard, each nation’s currency consisted either of gold itself, or of paper currency fully backed (convertible) by gold. Wikipedia
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    The definitive Wikipedia entry for Price Specie Flow Mechanism. Wikipedia is the biggest multilingual free-content encyclopedia on the Internet.
    en.wikipedia.org/wiki/Price_specie_flow_mechanism