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bullionism Explained

bullionism at English => English (The Britannica Concise) Of Explained:

Monetary policy of mercantilism, which called for national regulation of transactions in foreign currency and precious metals (bullion) in order to maintain a favorable balance in the home country. Bullionism is most closely associated with 16th- and 17th-cent. Spain, which was thought to owe its prosperity and military might to the gold and silver of its New World colonies. This view gave rise to the theory that a favorable balance of trade would increase the nation's supply of precious metals. Spain's abundant treasure led it to buy goods and services abroad and to neglect domestic industry, and it later became one of the most impoverished European states.