Question

what is the similarity between Adam Smith and Richard Cantillon in terms of the economic thought of the price specie flow mechanism? and whats is price specie flow mechanism explain please.

Answer 1

The similarity between Adam Smith and Richard Cantillon in terms of the economic thought of the price specie flow mechanism is as follows that the economist believes in the thought that everything in the economy is related with some price mechanism were under a gold standard system the countries which are having the positive trade balances are generally backed by the gold reserves.
The wealth management thought in the economics of both economists is important to define the economic thought and terminology in relation to the project orientation approach in the economic structure of the economy.
The price specie flow Mechanism is basically a gold standard Mechanism where the countries generally having a positive trade balance and effectively to be importing gold in comparison or in exchange for their respective exports and on the other hand the country those which are having negative trade balances are generally exporting the gold in exchange for the specific inputs and this will cause a shift of balance of trade in both the countries.