The model presented in this article is used to analyse the main issue facing Physiocracy; that of increasing the wealth and prosperity of France.' The Physiocrats considered the French kingdom as a poor and underdeveloped country,2 it was not simply a problem of speeding up economic growth, but of modifying some features of the French economy in such a way as to prime a process of development. In order to give rise to a mechanism of economic development, which is based on the accumulation of capital in agriculture,3 major changes in the absolute and relative prices of the products of land are required. This work fills a gap in the modern literature on Physiocracy. On one hand, there is widespread coverage of the economic conditions which characterise the Physiocratic process of growth.4 However, most investigations focus attention on the material magnitudes of the Tableau Economique, and no relationship is established between the process of physical development of gross and net output and the role of prices in Physiocracy.5 On the other hand, some recent works have shown that it is possible to describe the Tableau Economique as a two-sector model, where the relative price of primary and manufactured commodities depend upon the technology and upon the rule adopted for the distribution of surplus.6 Here too prices are not related to the process of economic development. The present article provides a bridge between the two above interpretations. In fact, it shows that Quesnay's analysis of price determination - which is different from that put forward in the recent works mentioned above - is closely related to his description of the process of development and growth of the French economy. Moreover the price system presented in this article can show why Physiocratic policies could cause major problems in the social and economic * I wish to thank my colleagues N. De Vecchi,.J. Eatwell, B. Groenewegen, G. Lunghini, L. Rampa and A. Sdralevich for their helpful comments. I am also very much indebted to an anonymous referee. Note on references: the works of Quesnay are referred to by abbreviated title and by the edition in which they are published. 1 See for instance Maximes generales, Meek (I962), p. 231; see also ibid. pp. 345-6; Fox-Genovese