Paris.
Versailles Palace.
France's Minister of Trade, Bayei, hesitantly handed the signed document to his assistant, then looked at the Minister of Finance across from him. "I'm not questioning the Crown Prince, but this will have no small impact on us... Is it really worth it?"
"Without a doubt, it is." Gaudin glanced at his pocket watch and gestured toward the door. "Care to have some tea together? Mediterranean Icing Cake has become quite popular lately. My treat."
Bayei nodded and rose to his feet, but then thought of the document he had just signed and sighed. "I suppose I should hurry up and enjoy more tea while I can. Next month, I may not be able to afford it."
The order he had just handed to his assistant required all government trade channels to immediately purchase tea at a premium 5% above market price, with the purchase price rising another 3% every week.
For this plan, the Treasury Department had allocated 7 million francs, with expected losses of around 900,000.
Gaudin put on his hat and smiled. "There will be something with an even greater impact next month. You'd better get used to it."
Bayei immediately recalled the Crown Prince's instructions and sighed again. "To be honest, I can understand driving up tea prices. After all, the British consume far more tea than we do.
"But the 'Restriction Order' seems as though it will only deal an even greater blow to our factories."
Gaudin rather proudly showed off the economic theory he had learned from the Crown Prince. "Do you remember what causes inflation?" "Of course. P = k · M. When the amount of currency in circulation increases relative to the total quantity of goods, the currency depreciates."
This was David Hume's classic explanation of inflation.
"Precisely." Gaudin