Price-Specie Flow Mechanism An argument David Hume made against those who argued that a favorable balance of trade is always good public policy. ... His empirical argument against the European mercantilism formed the building block for the classical economics. ... The American colonies facilitated this European policy by providing the raw materials that European manufactured into the finished goods and the re exported back to the colonial consumers in the America. ... David Hume's idea would have bolstered the Adam Smith's attack on the mercantilism and argument...

• Word Count: 1583
• Approx Pages: 6
• Grade Level: Undergraduate