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There is a very simple reasoning which shows the absurdity of mercantilism as a dogma. I call it Reductio ad Orbem (or ad Mundum) :

If all the countries in the world were to become net exporters, to whom would we export? The Klingons?

"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char

by Melanchthon on Thu Mar 18th, 2010 at 07:31:40 PM EST
In game theory terms, mercantilism is "rational but not superrational".

The brainless should not be in banking -- Willem Buiter
by Migeru (migeru at eurotrib dot com) on Fri Mar 19th, 2010 at 12:48:55 AM EST
[ Parent ]
A great summary of what I was trying to diary about recently.

My follow on question: what is a good economic strategy for prosperity that doesn't rely on net exports?

by Metatone (metatone [a|t] gmail (dot) com) on Fri Mar 19th, 2010 at 07:11:10 AM EST
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