<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-07 -->

# Colonial Economic System Balance

## Definition

The equilibrium between different economic forces in colonies, including production and consumption, investment and saving, and domestic and foreign trade. Better balance through market mechanisms promotes more sustainable and efficient economic development.

## Source Chapter

Book IV, Chapter 7

## Context

Smith argues that market mechanisms naturally promote economic balance, while monopoly policies often create artificial imbalances through market distortions and controlled production. He contends that more open arrangements would achieve better economic balance.

## Economic Domain

General Theory

---
