Abstract
The ‘specie-flow mechanism’ is an analytic version of automatic, or market, adjustment of the balance of international payments. In competitive markets with specie-standard institutions, behaviour will lead to national price levels and income flows consistent with equilibrium in the international accounts, commonly interpreted in this context to mean zero trade balances.
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Allen, W.R. (2018). Specie-Flow Mechanism. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1460
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DOI: https://doi.org/10.1057/978-1-349-95189-5_1460
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