OK, based on what I've read here, I'd like to post a NEW summary of how I see economics working in Civ4. Please feel free to make any comments and/or suggestions (though no flames please-I bruise easy

!)
1) Shields and Food can be split into 'productive' (or 'raw') and 'non-productive' (or 'finished'). The player (or AI) determines the allocation of 'raw' and 'finished' goods.
2) Conversion from 'raw' to 'finished' goods would probably occur at a 2 to 1 ratio.
3) Each city will require a minimum # of 'finished' goods in order to sustain current happiness and growth. This minimum would depend on both the city's population and the current government type.
4) Each city earns an income, per turn, based on its wealth-and the # of food and shields it produces each turn.
5) A city's wealth is based on city size (and/or population), city demographics, resource access and # of active trade routes passing through it.
6) Shields and food can be 'vectored' to a central pool, in the capital-with the value of each shield/food unit being based on the city's wealth, the relative 'scarcity' of the commodity, and its distance from the capital.
6a) Shields and food, once in the central pool, can be traded to other civs-just like luxuries and strategic resources currently can be.
7) In order to form trade deals, you need to build a 'trade unit'. However, this trade unit is not moved around like a caravan, but is 'used up' when you make a trade deal.
8) Trade routes can 'improve' with time and increased technology. Depending on the system used, this can either relate to how many turns pass between 'trade arrivals' (based on Rcoutme's 'speed' suggestion) or its value as a result of increased volume and speed of trade (my suggestion). Trade routes also improve in their ability to 'resist' pillaging or destruction.
9) Pillaging a trade route either (a) Earns you money based on the value of the resource or (b) gains you access to the resource (or food/shields) for X turns.
10) Corruption, Crime and Waste can reduce income and shields/food production. Waste can also effect the number of shields/food you lose when 'vectoring'.
11) The chance of a resource disappearing will now depend on the SIZE of that resource, the total number of cities that are 'using' the resource (i.e. that share it through the trade network), the number of improvements/units you build with that resource, in a single turn, and the number of units/improvements that use the resource on a consistant basis.
12) Each city contributes X% of its income to the national treasury, and this % can be adjusted by the player, but also naturally increases with each new age. The rest of a city's money is used to pay for maintainance of improvements, and for the funding of the Local PW budget.
13) The national treasury obtains the rest of its income from taxes, this can take the form of individual taxes (income tax), company taxes (based on private sector investment and # of commercial improvements), industry tax (based on the # of industrial improvements OR the number of shields you produce) and pollution tax (based on the level of pollution you're producing)
14) It should be possible to click on the 'personal tax' icon, and bring up the rates of all the different 'social groups'-so that you can adjust their tax rates individually.
15) National income can be allocated to 'Defense', 'Industry and Resources', 'Science and Education', 'Health', 'Infrastructure' and 'Law and Order'.
16) Rights of Passage need to be reformed, as does the population model, in order to incorporate even SOME of the changes listed above.
Anyway, thats a VERY quick summation, and not neccessarily complete, but I hope it helps you guys to understand my ideas-as they've been shaped and moulded by the great ideas I read here

! IMHO, I think my system is high in playability, whilst still increasing realism-and also keeping micromanagement reasonably LOW!
Yours,
Aussie_Lurker.