...and a gold outflow. 17. Here Mill ([1865] 1961, p. 625) cited Ricardo (Principles, 3rd ed., p. 143). "Gold and silver having been chosen for the general...between countries were purely a trade of barter." 18. This section is based on Bordo 1975. Note that Jevons ([1884] 1964) considered the same issue as...

...amount of gold through the trade balance — the theory of a specie-flow mechanism. Ricardo states that "gold and silver having been chosen for the general...between countries were purely a trade of barter," (1951, p. 137), so that the balance of trade is established. In other words, the system is completely...

...never been sufficiently appreciated. It is a just and most important observation of Mr. Ricardo, that, "Gold and silver having been chosen for the general medium of circulation, arc by the competitions of commerce distributed in such proportions amongst the different countries...

...effective competition we must place the fact thaf'gold and silver, the general medium of circulation, are by the competition of commerce distributed in...between countries were purely a trade of barter." 14 "The money of each country is apportioned to it in such quantities only as may be necessary to regulate...

...effective competition we must place the fact that "gold and silver, the general medium of circulation, are by the competition of commerce distributed in...the trade between countries were purely a trade of barter."14 "The money of each country is apportioned to it in such quantities only as may be necessary...

...resulting terms of trade after adjustment are independent of demand. But Ricardo (pp. 83-84) states that "gold and silver having been chosen for the general...between countries were purely a trade of barter." In other words, the system is completely dichotomized so that real variables are unchanged by the introduction...

...reciprocal demand ) had to say on this subject. Ricardo ( 1817;p. 137 of the 1951 reprint) writes: "Gold and silver having been chosen for the general...amongst the different countries of the world, as to accomodate themselves to the natural traffic which would take place if no such metals existed, and...

..." Gold and silver/' says Mr. Ricardo, " having been chosen for the " general medium of circulation, are, by the " competition of commerce, distributed...if no " such metals existed, and the trade between " different countries were purely a trade of bar"ter." Of this proposition Mr. Mill gives the following...

...of exports and imports, the one must exactly pay for the other. "Gold and silver," says Mr. Ricardo, "having been chosen for the general medium of circulation,...competition of commerce, distributed in such proportions among the different countries of the world, as to accommodate themselves to the natural traffic which...

...although he was only following the ideas laid down by Hume, his contemporaries, and his successors. "Gold and silver having been chosen for the general...the trade between countries were purely a trade of barter."31 In other words, the interaction of balance-ofpayments surpluses or deficits and relative...