Chapter 1 David Hume (1711-1776) 1. One of the greatest philosophers in Western history, as well as an accomplished historian and economist 2. deny the the inflow of gold specie could be sustainable- the Price-Specie-Flow Mechanism(铸币-价格机制 2006年版
2006年版 Chapter 1 David Hume（ 1711-1776） 1. One of the greatest philosophers in Western history, as well as an accomplished historian and economist. 2. deny the the inflow of gold specie could be sustainable— the Price-Specie-Flow Mechanism（铸币－价格机制）
Chapter 1 Price-specie Flow Mechanism 货币供应量=价格×商品量 IfM。↑Qfed→Pup The terms of trade change Export decline Import increase M s 2006年版
2006年版 Chapter 1 Price-specie Flow Mechanism MS= P× Q 货币供应量＝价格×商品量 If MS Q fixed P up The terms of trade change Export decline ,Import increase M s
Chapter 1 Price-specie Flow Mechanism Exports>Imports- Exports mports Step 1. Net inflow of specie. Net outflow of spe ecie. Step 2. Increase in the money Decrease in the money supply. supply Step 3 Increase in prices and Decrease in prices and o wages wages Step 4 Increase in imports and Decrease in imports and decrease in exports. increase in exports END: Exports=Imports. Exports=Imports. 2006年版
2006年版 Chapter 1 Price-specie Flow Mechanism
Chapter 1 Summary 1. Given sufficient time. an automatic trade balance adjustment(贸易的自动均衡机制) would take place between a trade surplus country and a trade deficit country. 2. There was a“ natural balance(自然的均衡) w of trade between nations which deliberate policy moves could not contradict. 2006年版
2006年版 Chapter 1 Summary 1. Given sufficient time, an automatic trade balance adjustment （贸易的自动均衡机制） would take place between a trade surplus country and a trade deficit country. 2. There was a “natural balance（自然的均衡） " of trade between nations which deliberate policy moves could not contradict
Chapter 1 Francios Quesnay (1694-1774) 1. The leader of Physiocrats (重农学派) 2. Was hailed as the Confucius of Europe”and" modern Socrates 3. He believed that agriculture is the only source of wealth (农业是国家财富的唯一源 R, and manufacturing and commerce were sterile as the value of their output was equal to the value of their inputs 2006年版
2006年版 Chapter 1 Francios Quesnay (1694-1774) 1. The leader of ‘ Physiocrats’ （重农学派） 2. Was hailed as the "Confucius of Europe”and "modern Socrates" 3. He believed that agriculture is the only source of wealth （农业是国家财富的唯一源 泉）, and manufacturing and commerce were "sterile" as, the value of their output was equal to the value of their inputs