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Extract entities, map to VSM, and synthesize analysis.
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-03 -->
# Sovereign Economic Policy Authority
## Definition
The governmental power to regulate commerce through tariffs, prohibitions, bounties, and other interventions, which Smith argues should be exercised with restraint and guided by principles of economic efficiency rather than private commercial interests.
## Source Chapter
Book IV, Chapter 3
## Context
Smith critiques how sovereigns have improperly delegated economic policy to commercial interests, resulting in restrictions and monopolies that serve private gain rather than public good, and argues for policies based on sound economic reasoning.
## Economic Domain
Regulation
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