ABSTRACT
Human beings differ one from the other, both as regards their productive capacities and their specific needs. This simple statement explains why trade does exist and allows understanding of why it is beneficial. If the power in question does not prevent free exchanges between the set of individuals who constitute its country and the other sets of individuals, one says that free trade prevails, this term being generally used to characterise trade between residents of different countries – the so-called international trade – and not trade between individuals of the same country. The opposite situation – the one in which specific constraints are imposed on international exchanges – corresponds to protectionism. Traders considered money only as an intermediary in trade, which means that they quickly get rid of the currency that they get thanks to their sales so as to purchase other commodities. However, one may wish to accumulate money cash-balances.
