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# System of Natural Liberty

## Definition

An economic system where perfect freedom of trade is established, allowing every man to pursue his own interest in his own way without violating laws of justice, resulting in the sovereign being discharged from directing private industry and confined to three essential duties.

## Source Chapter

Book IV, Chapter 9

## Context

Smith presents his alternative to both mercantile and agricultural systems, arguing that removing all systems of preference or restraint allows the natural system of perfect liberty to establish itself, which he considers the most effective means of promoting national prosperity.

## Economic Domain

General Theory

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