84:. He was the first to analyse and fully understand the concept of balance of trade for both visible goods and invisible services and capital movements. He explained how the shortage of coin in the Kingdom of Naples was due to balance of payments deficit. Using his findings he was able to reject the popular idea at the time that the scarcity in money was due to the exchange rate. The solution to the problem was found in the active encouragement of exports.
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He also found the cause of difference between poor Naples and rich Venice in that Venice had industry with increasing returns while Naples only had agriculture and primitive artisanry with no such advantages.
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Breve trattato delle cause che possono far abbondare li regni d’oro e d’argento dove non sono miniere
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Antonio Serra: A Neglected Herald of the
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A Short
Treatise on the Wealth and Poverty of Nations
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