Mercantilism

Mercantilism is the economic theory that a nation's prosperity depends upon its supply of capital and that the global volume of trade is unchangeable. The amount of capital, represented by bullion (amount of precious metal held by the state), is best increased through a balance of trade with large exports and low imports. Mercantilism suggests that the government should advance these goals by playing an active, protectionist role in the economy by encouraging exports and discouraging imports, especially through the use of tariffs. The economic policy based on these ideas is often called the mercantile system.

References

• Ekelund, Robert B. and Robert D. Tollison. Mercantilism as a Rent-Seeking Society: Economic Regulation in Historical Perspective. College Station: Texas A&M University Press, 1981.
• Ekelund, Robert B and Robert F. Hébert. A History of Economic Theory and Method. New York: McGraw-Hill, 1997.
• Heckscher, Eli F. Mercantilism. translation by Mendel Shapiro. London: Allen & Unwin. 1935.
• Keynes, John Maynard. "Notes on Mercantilism, the Usury Laws, Stamped Money and the Theories of Under-Consumption." General Theory of Employment Interest and Money.
• Landreth, Harry and David C. Colander. History of Economic Thought. Boston: Houghton Mifflin, 2002.
• Niehans, Jürg. A History of Economic Theory: Classic Contributions, 1720-1980. Baltimore: Johns Hopkins University Press, 1990.
• Vaggi, Gianni and Peter Groenewegen.. A Concise History of Economic Thought: From Mercantilism to Monetarism. New York: Palgrave Macmillan, 2003.
• Wilson, Charles. Mercantilism. London: Historical Association, 1966