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Economics · A History of Economic Thought by V Lokanathan

Chapter 5 : MERCANTILISM

Table of contents47 sections
  1. 1.MERCANTILISM
  2. 2.Introduction
  3. 3.Key Terms
  4. 4.📌 Exam Tidbits
  5. 5.Factors that gave Rise to Mercantilism
  6. 6.Key Terms
  7. 7.📌 Exam Tidbits
  8. 8.General Outline of Mercantilism
  9. 9.Key Terms
  10. 10.📌 Exam Tidbits
  11. 11.Role of the State
  12. 12.Key Terms
  13. 13.📌 Exam Tidbits
  14. 14.The Role of Money
  15. 15.Key Terms
  16. 16.📌 Exam Tidbits
  17. 17.Rate of Interest
  18. 18.Key Terms
  19. 19.📌 Exam Tidbits
  20. 20.The Balance of Trade
  21. 21.Key Terms
  22. 22.📌 Exam Tidbits
  23. 23.Population
  24. 24.Key Terms
  25. 25.📌 Exam Tidbits
  26. 26.Representative Mercantilists
  27. 27.Thomas Mun (1571-1641)
  28. 28.Antonio Serra (1580-1650)
  29. 29.Philipp Von Hornick (1638-1712)
  30. 30.Key Terms
  31. 31.📌 Exam Tidbits
  32. 32.Mercantilism in Action
  33. 33.Key Terms
  34. 34.📌 Exam Tidbits
  35. 35.An Appraisal of Mercantilism
  36. 36.Key Terms
  37. 37.📌 Exam Tidbits
  38. 38.Decline of Mercantilism
  39. 39.Key Terms
  40. 40.📌 Exam Tidbits
  41. 41.Neo-Mercantilism
  42. 42.Key Terms
  43. 43.📌 Exam Tidbits
  44. 44.Meaning of Mercantilism for Underdeveloped Countries
  45. 45.Key Terms
  46. 46.📌 Exam Tidbits
  47. 47.Quick-Recall Box

Chapter preview

MERCANTILISM

Introduction

The economic ideas and policies followed by European statesmen from the 15th century until the second half of the 18th century are generally described as mercantilism.

  • The core belief of early mercantilists was that the wealth of a nation could be increased by trade and consisted of the amount of bullion (gold and silver) it possessed.
  • The primary policy goal was to find ways and means of increasing the stock of gold and silver in a country.
  • The doctrine was a powerful force for nearly three hundred years in England, France, Germany, Italy, Spain, and Russia.

Regional Names for Mercantilism

Region/FocusNameDescription
GeneralBullionismNamed for the emphasis on accumulating bullion (gold and silver).
FranceColbertismNamed after J.B. Colbert, the French Finance Minister.
GermanyKameralismFocused on the royal treasury. According to Haney: ".....Kameral affairs concerned the economy of the prince, and Kameralism was the art which maintained, increased, and administered the royal income."

Key Terms

ConceptDefinition
MercantilismThe economic ideas and policies followed by European statesmen from the 15th to the 18th century, based on the belief that a nation's wealth could be increased by trade and accumulating precious metals.
BullionismAn early form/alternative name for mercantilism emphasizing that a nation's wealth consisted in its possessed amount of bullion (gold and silver).
KameralismThe German variant of mercantilism. Defined by Haney as "the art which maintained, increased, and administered the royal income."
ColbertismThe French variant of mercantilism, named after Finance Minister J.B. Colbert.

📌 Exam Tidbits

  • Timeline: 15th century to the second half of the 18th century.
  • Haney (Quote): ".....Kameral affairs concerned the economy of the prince, and Kameralism was the art which maintained, increased, and administered the royal income."
  • Core equation: Wealth = Bullion (Gold and Silver).

Factors that gave Rise to Mercantilism

The rise of mercantilism was driven by a combination of political, social, economic, and religious factors.

  • Political Factors (The Rise of Nation-States):
  • Towards the close of the Middle Ages, nationalism became a strong force.
  • The Renaissance , the Reformation , the invention of printing, and…
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Chapter 6 : THE PHYSIOCRATS