It is often the birth of economic analysis from the classical school. However, two schools preceded the classical school, themercantilist and the Physiocrats. Both schools are designed to analyze each economy according to what it sees as the source of economic wealth. How MercantilismPhysiocrats and they have played the role of precursors of classical economic thought, despite their differences? To answer this question, we discuss firstly the mercantilisttheories, then in a second time Physiocracy and its major theorists highlighting the differences between these two schools as to the explanation of the wealth ofnations
Mercantilism - the policy by which a nation sought to export more than it’s imported in order to build its supply of gold and silver, Mercantilism is aconception of the economy that prevails between the sixteenth century and the mid-eighteenth century Europe. Thinkers advocated mercantilist economic developmentthrough the enrichment of nations through trade, which allows a surplus balance of trade through investment in economic activities to increasing returns.Physiocracrats is an economic theory developed by the Physiocrats, a group of economists who believed that the wealth of nations was derived solely from the value of "landagriculture" or "land development." Their theories originated in France and were most popular during the second half of the 18th century. Physiocracy is perhaps thefirst well-developed theory of economics. The most significant contribution of the Physiocrats was their emphasis on productive work as the source of national wealth.