Mercantilism Was a pre-Keynesian Policy of Inflation, of Lowering Interest Rates Artificially, and of Increasing Effective Demand by Heavy Government Spending

Mercantilism was not only a policy of intricate government regulations; it was also a pre-Keynesian policy of inflation, of lowering interest rates artificially, and of increasing “effective demand” by heavy government spending and sponsorship of measures to increase the quantity of money. Like the Keynesians, the mercantilists thundered against “hoarding,” and urged the rapid circulation of money throughout the economy; furthermore, they habitually pointed to an alleged “scarcity of money” as the cause of depressed trade or unemployment.

--Murray N. Rothbard, "Mercantilism: A Lesson for Our Times?" in Economic Controversies (Auburn, AL: Ludwig von Mises Institute, 2011), 644.