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bimetallism (E5, N2)<br />The use of two metals, usually gold and silver, in a fixed ratio as the standard of value and ultimate means of payment. This currency system met with the approval of Adam sMITH. The arguments for bimetallism were that each metal would be more stable in value if connected with the other, that the low production levels of gold caused falling prices and trade recession, and that fixed exchange rates between countries on a pure gold standard and those on a pure silver standard would be possible. The system was practised in the nineteenth century in the USA and in Europe in the Latin Union (a monetary alliance of France, Belgium, Switzerland, Italy, Greece and Romania formed in 1865 and abandoned in 1873 as a consequence of the large amount of Nevada silver and Germany's conversion from a silver to a gold standard).
industrial capitalism (P1)<br />The phase of CAPITALISM beginning with the INDUSTRIAL REVOLUTION; the stage of economic development following MERCHANT CAPITALISM.
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produces inevitable conclusions and policy prescriptions.<br /> <br /><em>Reference</em><br />Leontief, WW (1951) The Structure of the American Economy, 1919-39, 2nd edn, New York: Oxford University Press.<br /> - (1966) Input-Output Economics, New York: Oxford University Press.<br /> - (1966, 1977) Essays in Economics: Theories, Facts and Policies, Oxford: Basil BlackwelL
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