© 2005 David Koeller.  All rights reserved.




  • Mercantilism is the name given to an economic practice that argued the goal of economic activity was to increase the wealth of the state by increasing its gold reserves.  This was done by maintaining a positive balance of payments.  

  • A positive balance of payments means that the state exported more than its imported.   This was often attempted by placing high tariffs on imports and subsidizing domestic manufactures.


© 2003 by David Koeller.  All rights reserved.