Monetary Theory and Policy from Hume and Smith to Wicksell: Money, Credit, and the Economy

Historical Perspectives on Modern Economics

by Arie Arnon

This book provides a comprehensive survey of the major developments in monetary theory and policy from David Hume and Adam Smith to Walter Bagehot and Knut Wicksell. In particular, it seeks to explain why it took so long for a theory of central banking to penetrate mainstream thought. The book investigates how major monetary theorists understood the roles of the invisible and visible hands in money, credit and banking; what they thought about rules and discretion and the role played by commodity-money in their conceptualizations; whether or not they distinguished between the two different roles carried out via the financial system - making payments efficiently within the exchange process and facilitating intermediation in the capital market; how they perceived the influence of the monetary system on macroeconomic aggregates such as the price level, output and accumulation of wealth; and finally, what they thought about monetary policy.

Genres: Economics

448 pages, Kindle Edition

First published January 1, 2010

Reviews

[Juan · Rating 4 out of 5]

There aren't many books on the history of monetary thought, so I really appreciate the effort Arnon put in writing this one. It is a really well written and clear exposition of the main authors and theories of 19th century England (plus Hume and Smith). I wish it also dealt with continental monetary theory, but England alone is more than enough to make me happy.

[Tomas Daubner · Rating 5 out of 5]

How dare you question the quantity theory of money? It is indisputable fact of economics. Or not.