What is meant by the paradox of mercantilism how was this, Macroeconomics

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What is meant by the paradox of mercantilism how was this

Problem

1. Why did the Mercantilists consider holdings of precious metals so important to nation-state building?

2. What were the pillars of Mercantilist thought? Why was regulation of the economy so important?

3. What is meant by the "paradox of Mercantilism"? How was this reflected in Mercantilist wage and population policies?

4. What are the critical assumptions of the price-specie-flow mechanism? What happens to the trade balance in a surplus country if the demand for traded goods is price inelastic? Why?

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