Failure of the Mercantilism Essay Example | Topics and Well Written Essays - 500 words

Failure of the Mercantilism - Essay ExampleFrom this radical it is clear thatthe mercantilists believed that the presence of more lucky and silver bullions in a country translated to a crack economy than any country with minimal gold and silver reserves. The theorists believed and encouraged countries not to use their gold deposits for slew even when the people desperately needed these products. The mercantilists had the idea that any successful trade meant the stumble of one party and the loss of the other party. They never viewed the trade between two countries as organism mutually beneficial. They encouraged their countries to influence the international trade and ensure that the citizens did not compromise their gold and silver deposits.This essay stresses thatthe mercantilists developed ideas that were meant to promote the interests of the merchants since they were believed to be a significant source of a countrys gold and silver reserves. The government placed the role of attracting more gold and silver to the country to the merchants and likewise entrusted them with implementing relevant measures that would seek to regulate the economy. Malynes, for example, states that the merchants more specifically the bankers would develop appropriate measures that would see the increase in the supply of specie into the country. Malynes rejected any effects of the exchange rate in influencing external trade and trusted the tricks of the bankers to solve the economic problem experienced in the country.