3.3. Further Explanations on the Nature of Exchanges
Exchange rates are a function of the balance of trade and other factors.
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1.3. Villages
Cantillon explains that settlements are based on the requirements of production, especially the quantity of labor, and the extent of the specialization and division of labor.
3.8. The Refinements of Credit of General Banks
Inflation is a corrupt process and can result in bank runs and economic chaos.
1.8. Some Artisans Earn More, Others Less, According to the Different Cases and Circumstances
Workers with higher quality skills, risky jobs, or jobs which require trustworthy employees will receive higher wages.
1.13. The Circulation and Exchange of Goods and Merchandise, as well as their Production, are Carried On in Europe by Entrepreneurs, and at a Risk
Cantillon introduces, for the first time, the theory of entrepreneurship.
2.6. The Increase and Decrease of the Quantity of Money in a State
Cantillon uses his price-specie flow mechanism to analyze some of the effects of inflation.
3.6. Banks and their Credit
Fractional-reserve banking is a system where the banks lend some of their deposits and earn interest, but it comes with risks.
1.11. The Par Value or Ratio between the Value of Land and Labor
Only money— a “most certain measure”—can be used for income measurements and comparisons.
1.16. The more Labor there is in a State, the more the State is Judged Naturally Rich
The wealth of a nation depends on putting the labor force to work.
2.4. Further Reflection on the Rapidity or Slowness of the Circulation of Money in Exchange
A variety of factors affect the flow of money in circulation and this in turn affects the amount of money in circulation.
2.9. Interest on Money and its Causes
Interest rates on loans are connected with an individual’s time preference.
3.4. The Variations in the Proportion of Values with Regard to the Metals Used as Money
The price of gold and silver and the ratio between them is determined by markets and is also based on their usefulness, cost of production, and transportation costs.
1.4. Market Towns
Entrepreneurs establish markets in centrally located villages which provide the necessary conditions under which prices are established between supply and demand.
1.9. The Number of Laborers, Artisans, and Others, Who Work in a State, is Naturally Proportioned to the Demand for Them
Prosperity cannot be created by subsidizing job training.
1.14. The Desires, Fashions, and Ways of Life of the Prince, and especially of the Property Owners, Determine the Use to which Land is put in a State, and Cause the Variations in the Market Prices of all Things
Cantillon constructs a model of the isolated estate or closed economy where the choices of property owners determine outputs and prices, regardless if they manage the isolated estate or lease it to farmers.
2.7. Continuation of the same subject
Changes in the quantity of money will change relative prices and have real effects on the economy, a phenomenon now known as the "Cantillon Effects".
