the country, Smith believed that only caused a monopoly within the country and encouraged equal exportation and importation.Finally, the mercantilist contra-quantity theory consisted of seven main points; the classicalists differed from most of those because they favored quantity theories. Mercantilists believed that money didn't determined prices, while the classicalists realized that there were many factors that determined prices, including supply, demand and prices. The classicalists wanted to anchor money with a fixed quantity of some real object, while the mercantilists favored the nominal dollar value. "The mercantilist plan leaves money anchorless" (Humphrey). That implies that the mercantilists were anchoring each dollar with another dollar. While the mercantilists argued that the interest rate was purely a monetary phenomenon, Smith and the classicalists differed. He believed that the natural equilibrium rate of interest was actually determined by productivity and thrift. He also believed that the natural rate couldn't be affected by money....
