The Golden Age of the Quantity Theory 0691042950

Citation preview

Laidler,

David

E.

The golden age of quantity theory

W. the

DATE DUE

DEMCO

38-297

a\ “ as

\5\

aeer

mm,

\re) -

¥

. Beat

oa

rik

igre

"xe ware) fant, wei 7 io tn he Ool eea, eth pfiaae 4

cy

str ee ai ie

cic,

eC.

ad

ace

Oe

‘iv? Gey

hair

654 ar

La Saath

aay

cnt

aites

Wee

Fr 12 wiiceha qleces ip ee yeas.-+ ake

Ce

ans gf

rod

ibe

praeedth

Weer es

a

Ceo! wi)

hemes WE

c

eteh

STC tl bE, Shae te Desihe” IS.

oo

emer

Vig

xt

(iierhow Min

oMa

We.’ I

Wits)

be stetpeebaand

my

pl

if

io?

1D

eh Syt-lgee

paitirile

atia (ldheinbiee fea

ea

and eee

GS

wie

I por -cnigertege ts

Bie’ Vea)

vad, ‘a formal.

artic wees

eet ee ee SEL

Tie Gage thes

Bites

Ba

a teete het Hgetet tie

ghia

he celgir (Conban: ber:

PATS

Sb egraeny

int oid m6 Paiben ar ibetenone OE eee Cte

(x

=

te: (hale teres aficen tha

auquabiee Il

needle}

hae

Woy'to-t doe

14? SRL

i javye>

‘ie Fre.

avila Sahel

eee)

Kheavekir Hine clan.

weed eed

ow

Grae m0

“we,

«ahi!

a

tl wane

cemMie Snare

-y

see)

Geigy o)-paly 1

ie

a ae

NaH

Sora

aie teat

nae

ifhaistreamer oh
pr

Fe

sone ‘

i ‘

:

)

ne

a

a

References

Aftalion, A. (1909) ‘La réalité des surproductions générales 3me installment’, Revue d'Economie Politique 23 (Mar.), 201-29. Arnon, A. (forthcoming) Thomas Tooke - Pioneer of Monetary Theory, Aldershot, Hants; Edward Elgar. Bagehot, W. (1873) Lombard Street: A Description of the Money Market, London: P. S. King (reprinted 1962, F. C. Genovese (ed.), Homewood, Ill: Richard Irwin). Bagehot, W. (1875) ‘A new standard of value’, The Economist, 20 Nov., reprinted 1892, Economic Journal 2 (Sept.), 472-7. Bailey, R. E. (1976) ‘On the analytical foundations of Wicksell’s cumulative process’, Manchester School 44 (Mar.), 52-71. Barbour, D. (1912) The Standard of Value, London: Macmillan. Barkai, H. (1989) ‘The old historical school: Roscher on money and monetary issues’, History of Political Economy 21, No. 2, 179-200. Becker, G. and Baumol, W. (1952) ‘The classical monetary theory: the outcome of the discussion’ Economica NS 19 (Nov.), 355-76. Bickerdike, C. F. (1914) ‘A non-monetary cause of fluctuations in employment’, Economic Journal 24 (Sept.), 357-70. Blomqvist, A., Wonnacott, P. and Wonnacott, R. (1983) Economics,

Toronto: McGraw-Hill. Bordo, M. (1975) ‘John Cairnes on the effects of the Australian gold discoveries 1851-72: an early application of the methodology of positive economics’, History of Political Economy 7, No. 3, 337-59. Bordo, M. (1987a) ‘Equation of exchange’ in Eatwell, J., Milgate, M. and Newman, P. (eds) The New Palgrave - A Dictionary of Economics, London: Macmillan.

Bordo, M. (1987b) ‘Bimetallism’ in Eatwell, J., Milgate, M. and Newman, P. (eds) The New Palgrave - A Dictionary of Economics, London: Macmillan. 201

202

REFERENCES

.

Bordo, M. and Jonung, L. (1987) The Long-run Behaviour of the Velocity of Circulation, Cambridge: Cambridge University Press. Bridel, P. (1987) Cambridge Monetary Thought, London: Macmillan. Cairnes, J. E. (1860) ‘Essays towards a solution of the gold question’ (reprinted 1873, Cairnes, J. E.). Cairnes, J. E. (1873) Essays in Political Economy, London: Macmillan (reprinted 1965, New York: Augustus Kelley). Cannan, E. (1919) The Paper Pound 1797-1821 (The Bullion Report of 1810), London: P. S. King and Son (reprinted 1969, New York: Augustus Kelley). Cantillon, R. (1734) Essai sur la nature du commerce en général, edited with English translation, H. Higgs, 1931, London: Macmillan. Carver, T. N. (1897) ‘The value of the money unit’, Quarterly Journal of Economics 11 (July), 429-35. Carver, T. N. (1903) ‘A suggestion for a theory of industrial depressions’, Quarterly Journal of Economics 17 (May), 497500. Cassel, G. (1904) ‘Om férandringar i den allmanna prisnivan’ (On Changes in the Price Level), Ekonomisk Tidskrift 6, 311-31. Cernuschi, H. (1876) M. Michel Chevalier et le Bimétallisme Articles

Publiés

dans

le Siécle en Avril et Mai

1876,

Paris:

Librairie de Guillaumin et Cie. Chen, C. N. (1972) ‘Bimetallism: theory and controversy in perspective’, History of Political Economy 4 (Spring), 89-112. Chevalier, M. (1859) On the Probable Fall in the Value of Gold, translated by R. Cobden, New York: D. Appleton. Chipman, J. (1987) ‘Bickerdike, Charles Frederick’ in Eatwell, J., Milgate, M. and Newman, P. (eds) The New Palgrave - A Dictionary of Economics, London: Macmillan. Clark, J. M. (1917) ‘Business acceleration and the law of demand: a technical factor in economic cycles’, Journal of Political Economy 25 (Mar.), 217-35. Corry, B. A. (1962) Money, Saving and Investment in English Economics 1800-1850, London:

Macmillan.

Cottrell, A. (1989) ‘Price expectations and equilibrium when the interest-rate is pegged’, Scottish Journal of Political Economy 36 (May), 125-40. Deutscher,

P. (1990)

R. G. Hawtrey

and the Development

of

REFERENCES

203

Macroeconomics, London: Macmillan. Dornbusch, R. (1976) ‘Expectations and exchange rate dynamics’, Journal of Political Economy, 84 (December), 1161-76. Dowd, K. (1989) The State and the Monetary System, Hemel

Hempstead: Philip Allan. Edgeworth, F. Y. (1887) ‘Memorandum by the Secretary, Attendant to Report on Variations in the Value of the Monetary Standard’, Report of the British Association for the Advancement of Science, pages 254-301. Edgeworth, F. Y. (1888) ‘The mathematical theory of banking’, Journal of the Royal Statistical Society 51 (Mar.), 113-26. Edgeworth, F. Y. (1895) ‘Thoughts on monetary reform’, Economic Journal 5 (Sept.), 434-51. Edgeworth, F. Y. (1925) Papers Relating to Political Economy, 3 vols, London: Macmillan for the Royal Economic Society. Eshag, E. (1963) From Marshall to Keynes, Oxford: Blackwell. Fetter, F.W. (1965) Development of British Monetary Orthodoxy, Cambridge, MA: Harvard University Press. Fetter, F. W. (1968) ‘The transfer problem: formal elegance or historical realism’ in C. R. Whittlesey and J. S. G. Wilson (eds.) Essays in Money and Banking in Honour of R. S. Sayers, Oxford: Clarendon Press. Fisher, I. (1894) ‘The mechanics of bimetallism’, Economic Journal 4 (Sept.), 341-55. Fisher, I. (1896) ‘Appreciation and interest? AEA Publications 3

(11) (Aug.), 331-442. Fisher, I. (1911) (Revised 1913). The Purchasing Power of Money, New York: Macmillan. Fisher, I. (1923) ‘The business cycle — largely a “Dance of the Dollar” ’, Journal of the American Statistical Association 18 (Dec.), 1024-8. Foxwell, H. S. (1886) Jrregularity of Employment and Fluctuations of Prices, Edinburgh: Co-operative Printing Co. Ltd. Friedman, M. (1990) ‘Bimetallism Revisited’, The Journal of Economic Perspectives 4 (Fall), 85-104. Friedman, M. and Schwartz, A. J. (1963) A Monetary History of Princeton NJ: Princeton, the United States 1867-1960, University Press for the National Bureau of Economic Research. Giffen, R. (1877) Stock Exchange Securities, London: G. Bell. Giffen, R. (1886) ‘On some bimetallic fallacies’, (Reprinted in

204

REFERENCES

.

Giffen, R. (1892a)). Giffen, R. (1889) ‘A problem in money’, The Nineteenth Century, (reprinted in Giffen, R. (1892a)). Giffen, R. (1892a) The Case Against Bimetallism (2nd edn), London: G. Bell and Sons. Giffen, R. (1892b) ‘Fancy monetary standards’, Economic Journal 2 (Sept.), 209-38. Glasner, D. (1985) ‘A reinterpretation of classical monetary theory’ Southern Economic Journal 52 (July), 46-67. Glasner, D. (1989) Free Banking and Monetary Reform, Cambridge: Cambridge University Press. Gold and Silver Commission (Royal Commission Appointed to Enquire Into Recent Changes in the Relative Values of the Precious Metals) (1889) Final Report, Washington: Government Printing Office [sic]. Goodhart, C. A. E. (1985) The Evolution of Central Banks, London: London School of Economics. Goschen, G. J. (1861) The Theory of Foreign Exchanges, London: Effingham Wilson. Gray, M. and Parkin, J. M. (1973) ‘Portfolio diversification as optimal precautionary behaviour’, in Morishima, M.: (ed.), Theories of Demand, Real and Monetary, London: Oxford University Press. Haberler, G. (1937), Prosperity and Depression, Geneva: League of Nations; 6th edn (1964), Cambridge, MA: Harvard University Press. Harrington, R. (1989) ‘The classical quantity theory’, in Cobham, D. Harrington, R. and Zis, G. (eds), Money, Trade and Payments, Manchester: Manchester University Press. Harrod, R. (1969) Money, London: Macmillan. Hawtrey, R. (1913) Good and Bad Trade, London: Constable. Hayek,

F.

A.

von

(1931)

Prices

and

Production,

London:

Routledge and Kegan Paul. Hayek, F. A. von (1932) ‘A note on the development of the doctrine of forced saving’ Quarterly Journal of Economics 47, 123-33. Hegeland, H. (1951) The Quantity Theory of Money (reprinted 1966, New York: Augustus Kelley). Hicks, J. R. (1935) ‘A suggestion for simplifying the theory of money’, Economica, NS 2 (Feb.), 1-19. Hicks, J. R. (1983) ‘From classical to post-classical: the work of J.

REFERENCES

S. Mill’, in Classics and Moderns,

Cambridge,

MA:

205

Harvard

University Press. Hicks, J. R. (1989) A Market Theory of Money, London: Oxford University Press. Hildreth, C. (1968) ‘F. Y. Edgeworth’, in The International Encyclopaedia of the Social Sciences, New York: Macmillan and the Free Press. Hobson, J. A. (1894) The Evolution of Modern Capitalism, London: Walter Scott. Hollander, S. (1979) The Economics of David Ricardo, Toronto: University of Toronto Press. Hollander, S. (1986) The Economics of John Stuart Mill, Toronto: University of Toronto Press. Horton, S. D. (1887) The Silver Pound and England’s Monetary Policy Since the Restoration, London: Macmillan. Howitt, P. W. (1989) ‘Wicksell’s cumulative process as nonconvergence to rational expectations equilibrium’, London Ontario: University of Western Ontario (mimeo). Hucks-Gibbs, H. and Grenfell, H. R. (eds) (1886) The Bimetallic Controversy, London: Effingham Wilson. Hume, D. (1752) ‘Of Money’, ‘Of the Balance of Trade’ and ‘Of Interest’ in Essays Moral, Political and Literary, (reprinted 1963, London: Oxford University Press). Humphrey, T. M. (1984) ‘Algebraic quantity equations before Fisher and Pigou’, Federal Reserve Bank of Richmond Economic Review (Sept./Oct.), 13-22. Jevons, W. S. (1862) ‘On the study of periodic commercial fluctuations’, (reprinted in Jevons, W.S. (1884)). Jevons, W. S. (1863) ‘A serious fall in the value of gold ascertained and its social effects set forth,’ (reprinted in Jevons, W. S. (1884)). Jevons, W. S. (1866) ‘On the frequent autumnal pressure in the money market, and the action of the Bank of England’, (reprinted in Jevons, W. S. (1884)). Jevons, W. S. (1868) ‘Gold and silver: a letter to M. Wolowski’, (reprinted in Jevons, W. S. (1884)). Jevons, W. S. (1875) Money and the Mechanism of Exchange,

London: C. Kegan Paul and Co. (reprinted 1877 New York: D. Appleton).

206

REFERENCES

Jevons, W. S. (1881) ‘Bimetallism’, (reprinted in Jevons, W. S. (1884)). Jevons, W. S. (1884) Investigations in Currency and Finance edited by H. S. Foxwell, London: Macmillan. Jonung, L. (1979) ‘Knut Wicksell and Gustav Cassell on secular movements in prices’, Journal of Money, Credit and Banking 11 (May), 165-81. Jonung, L. (1988) ‘Knut Wicksell’s unpublished manuscripts — a first glance’, European Economic Review 32, March 505-11. Jonung, L. (ed.) (1991) The Stockholm School of Economics Revisited, Cambridge: Cambridge University Press. Juglar, C. (1860) Des crises commerciales et leur retour périodique en France, en Angleterre et aux Etats-Unis \st edn, (Sth edn, 1938, Paris, reprinted 1969, New York: Burt Franklin). Kemmerer, E. W. (1909) Money and Credit Instruments in their Relation to General Prices, New York: H. Holt. Keynes, J. M. (1911) ‘Review of Irving Fisher: The Purchasing Power of Money’, Economic Journal 21 (Sept.), 393-8. Keynes, J. M. (1912) Indian Currency and Finance, London:

Macmillan. Keynes, J. M. (1913) ‘Review of Sir David Barbour: The Standard of Value’, Economic Journal 23 (Sept.), 390-3. Keynes, J. M. (1923) A Tract on Monetary Reform, London: Macmillan. Keynes, J. M. (1925) ‘Alfred Marshall’ in A. C. Pigou (ed.), Memorials of Alfred Marshall, London: Macmillan. Keynes, J. M. (1930) A Treatise on Money, London: Macmillan. Keynes, J. M. (1936) The General Theory of Employment, Interest and Money, London: Macmillan. Kirtzner, I. (1987) ‘L. von Mises’ in Eatwell, J., Milgate, M. and Newman, P. (eds) The New Palgrave - A Dictionary of Economics, London: Macmillan. Kohn, M. (1985) ‘On the long-run real effects of inside money and outside money: an examination of some propositions stated by Cairnes and Mill’, London Ontario: University of Western Ontario (mimeo). Kompas, T. (1989) Studies in the History of Long Run Equilibrium Theory, PhD dissertation, University of Toronto. Kydland, F. and Prescott, E. (1982) ‘Time to Build and Aggregate Fluctuations’ Econometrica 50 (Sept.), 1345-70.

REFERENCES

207

Laidler, D. (1972) ‘On Wicksell’s theory of price level dynamics’, Manchester School 40 (June), 125-44. Laidler, D. (1973) ‘Thomas Tooke on Monetary Reform’ in Peston, M. and Corry, B. (eds), Essays in Honour of Lord Robbins,

London: Weidenfeld and Nicholson. Laidler, D. (1981) ‘Adam Smith as a monetary economist’, Canadian Journal of Economics, 14 (May), 185-200. Laidler, D. (1982) ‘Jevons on money’, Manchester School 50 (Dec.), 326-53. Laidler, D. (1987a) ‘The bullionist controversy’ in Eatwell, J., Milgate, M. and Newman, P. (eds), The New Palgrave - A Dictionary of Economics, London: Macmillan. Laidler, D. (1987b) ‘What was new about liquidity preference theory,’ London Ontario: University of Western Ontario (mimeo). Laidler, D. (1991) ‘The Austrians and the Stockholm School - two failures in the development of macroeconomics’, in Jonung, L. (ed.). Laughlin, J. L. (1885) A History of Bimetallism in the United States, New York: Appleton. Laughlin, J. L. (1887) ‘Gold and prices since 1873’, Quarterly Journal of Economics | (Apr.), 319-55. Laughlin, J. L. (1903) The Principles of Money, New York: Charles Scribnet’s & Sons. Laughlin, J. L. (1909) ‘Gold and prices 1890-1907,’ Journal of Political Economy 17 (May), 257-71. Lavington, F. (1921) The English Capital Market, London: Methuen. Leijonhufvud, A. (1968) On Keynesian Economics and the Economics of Keynes, London: Oxford University Press. Leiyonhufvud, (1981) ‘The Wicksell connection’, in Information and Co-ordination, London: Oxford University Press. Lucas, R. E. Jr (1972) ‘Expectations and the neutrality of money’ Journal of Economic Theory 4 (2), 115-38. Lundberg, E. (1937) Studies in the Theory of Economic Expansion, (reprinted 1964, New York: Augustus Kelley). Malthus, T. R. (1811) ‘Depreciation of paper currency’ Edinburgh Review 17 (Feb.), 340-72. Marget, A. (1931) ‘Leon Walras and the “Cash balance approach to

208

REFERENCES

.

the value of money” ’, Journal of Political Economy 39 (Oct.),

569-600. Marget, A. (1938-42) The Theory of Prices, 2 vols., New York: Prentice Hall. Marshall, A. (1871) ‘Money’ in J. Whittaker (ed.) (1975). The Early Economic Writings of Alfred Marshall, 2 vols, London: Macmillan. Marshall, A. (1887) ‘Remedies for fluctuations in general prices’, Contemporary Review, (reprinted in A. C. Pigou (ed.) (1925), Memorials of Alfred Marshall, London: Macmillan). Marshall, A. (1890) Principles of Economics, London: Macmillan. Marshall, A. (1923) Money, Credit and Commerce, London: Macmillan. Marshall, A. (1926) Official Papers of Alfred Marshall edited by J. M. Keynes, London: Macmillan. Marshall, A. and Marshall, M. P. (1879) Economics of Industry, London: Macmillan. Marx, K. (1867) Capital Volume | (translated 1883 from 3rd German edn by S. More and E. Aveling and edited by F. Engels, reprinted 1961, Moscow, Foreign Languages Publishing House). Mason, R. S. (1989) Robert Giffen and the Giffen Paradox, Oxford: Philip Allan. Menger, C. (1893) ‘On the origin of money’, Economic Journal 2 (June), 239-55. Mill, J. S. (1844) ‘On the influence of consumption upon production’ in Essays on Unsettled Questions in Political Economy, (2nd edn, 1874) London: Longmans, Green, Reader and Dyer, (reprinted 1967 New York: Augustus Kelley). Mill, J. S. (1871) The Principles of Political Economy with Some of Their Applications to Social Philosophy 7th edn, London (reprinted 1965 in 2 vols, edited by J. M. Robson, Toronto: University of Toronto Press.) Mises, L. von (1912) The Theory of Money and Credit 2nd edn (1924) translated by H. E. Batson (1934), London: Jonathan Cape. (reprinted 1953, New Haven: Yale University Press). Mitchell, W. C. (1896) ‘The quantity theory of the value of money’ Journal of Political Economy 4 (Mar.), 139-65. Mitchell, W. C. (1914) ‘The new banking measure in the United States’, Economic Journal 24 (Mar.), 130-8.

REFERENCES

209

Myhrman, J. (1991) ‘The monetary economics of the Stockholm School: a perspective’, in Jonung, L. (ed.) (1991). Newcomb, S. (1885) Principles of Political Economy, New York:

Harper & Bros. Newman, P. (1987) ‘F. Y. Edgeworth’ in Eatwell, J., Milgate, M. and Newman, P. (eds) The New Palgrave - A Dictionary of Economics, London: Macmillan. Nicholson, J. S. (1893) A Treatise on Money and Essays on Monetary Problems 2nd edn, London: A. and C. Black. Ohlin, B. (1936) ‘Introduction’ to English translation of Wicksell, K. (1898). Patinkin, D. (1956) Money, Interest and Prices, 1st edn, 2nd edn (1965) New York: Harper & Row. Patinkin, D. (1965) ‘Wicksell’s monetary theory’, in Money Interest and Prices, 2nd edn, New York: Harper & Row. Patinkin, D. (1973) ‘Keynesian monetary theory and the Cambridge School’ in Johnson, H. G. and Nobay, A. R. (eds), Issues in Monetary Economics, London: Oxford University Press. Patinkin, D. (1976) Keynes’ Monetary Thought: A Study of its Development, Durham, NC: Duke University Press. Peart, S. (1990) “‘W. S. Jevons theory of economic fluctuations: the role of expectations’, Williamsburgh, Va: College of William and Mary (mimeo). Pigou, A. C. (1912) Wealth and Welfare, London: Macmillan. Pigou, A. C. (1913a) Unemployment, London: Williams and Norgate. Pigou, A. C. (1913b) ‘Review of R. G. Hawtrey: Good and Bad Trade’, Economic Journal 23 (Dec.), 580-3. Pigou, A. C. (1917) ‘The value of money’, Quarterly Journal of Economics, (reprinted 1954 in Ellis, H. and Haley, W. Readings in Monetary Economics, Homewood, IL: Richard Irwin, for the AEA). Pigou, A. C. (1919) The Economics of Welfare London: Macmillan. Pigou, A. C. (1927) Industrial Fluctuations, London: Macmillan. Presnell, L. R. (1968) ‘Gold reserves, banking reserves and the Baring Crisis of 1890’ in Whittlesey, C. R. and Wilson, J. S. G. (eds), Essays in Money and Banking in Honour of R. S. Sayers, Oxford: The Clarendon Press. Price, B. (1882) ‘Letter to H. R. Grenfell’ in Hucks-Gibbs, H. and

210

REFERENCES

.

Grenfell, H. R. (eds) (1886) The Bimetallic Controversy, London: Effingham Wilson, pages 323-4. Radcliffe Committee (Committee on the Working of the Monetary System) (1959) Report, London: HMSO. Ricardo, D. (1816) Proposal for an Economical and Secure Currency, reprinted in Sraffa, P. (ed.) (1956), Works and Correspondence of David Ricardo, Volume 3, Cambridge: Cambridge University Press for the RES. Robertson, D. H. (1915) A Study of Industrial Fluctuations, (reprinted 1948 London: London School of Economics). Robertson, D. H. (1926) Banking Policy and the Price Level, London: P. S. King and Son (reprinted 1949, New York: Augustus Kelley). Rockoff, H. (1990) ‘The “Wizard of Oz” as a Monetary Allegory’, Journal of Political Economy 98 (Aug.), 739-60. Rolnick, A. and Weber, W. (1986) ‘Gresham’s Law or Gresham’s Fallacy’, Journal of Political Economy 94 (Feb.), 185-99. Sargent, T. and Wallace, N. (1983) ‘The real bills doctrine and the quantity theory - a reconsideration’, Journal of Political Economy 90 (Dec.), 1212-36. Selgin, G. (1988) The Theory of Free Banking, Totowa NJ: Rowman and Littlefield. Senior, N. W. (1840) Three Lectures on the Value of Money, reprinted London: London School of Economics and Political Science, Scarce Tracts in Political Economy, No. 4, 19. Sprague, O. (1910) A History of Crises Under the National Banking System, Washington DC: Government Printing Office. Thornton, H. (1802) An Enquiry into the Nature and Effects of the Paper Credit of Great Britain, reprinted with an Introduction by F. A. von Hayek, London: George Allen and Unwin (1939). Tooke, T. (1844) An Enquiry into the Currency Principle, 2nd edn, London: Longman, Brown, Green and Longmans. Uhr, C. (1960) Economic Doctrines of Knut Wicksell, Berkeley: University of California Press. Viner, J. (1937) Studies in the Theory of International Trade, New York: Harper & Bros. Walker, F. A. (1878) Money, New York: H. Holt and Co. Walker, F. A. (1897) International Bimetallism, New York: H. Holt and Co.

REFERENCES

211

Walras, L. (1886) Théorie de la monnaie, Lausanne: Corbaz. Walras, L. (1887) ‘On the solution of the Anglo-Indian monetary problem’, Report of the British Association for the Advancement of Science, pages 849-51. Walras, L. (1889) Elements d’économie politique pure 2nd edn (as translated from the 1926 definitive edition by W. Jaffé (1954)), Homewood IL: R. Irwin. Warburton, C. (1966) Depression, Inflation and Monetary Policy, Selected Papers 1945-1953. Baltimore: Johns Hopkins University Press. White, L. (1984) Free Banking in Britain: Theory, Experience and Debate, Cambridge: Cambridge University Press. Wicksell, K. (1896), Value, Capital and Rent, translated by S. W. Frowen, London: Allen and Unwin, (1965). Wicksell, K. (1898) Interest and Prices, translated by Richard Kahn

for the Royal Economic Society 1936, (reprinted 1962 New York: Augustus Kelley). Wicksell, K. (1905) Lectures in Political Economy, Volume I (1911 edn, translated by E. Claassen 1935, London: Routledge and Kegan Paul). Wicksell, K. (1906) Lectures in Political Economy, Volume II (1915 edn translated by E. Classen 1935, London: Routledge and Kegan Paul). Wicksell, K. (1907a) The Enigma of Business Cycles, as translated by C. G. Uhr from ‘Krisernas Gata’ Statsokonomisk Tidskrift 255-84, and included in (1962) Augustus Kelly edition of Wicksell 1898, (223)-(239). Wicksell, K. (1907b) ‘The influence of the rate of interest on prices’, Economic Journal 17 (June), 213-20. Williams, A. (1892) ‘A “Fixed Value of Bullion” standard: a proposal for preventing general fluctuations of trade’, Economic Journal 2 (June), 280-9. Yeager, L. (1966) International Monetary Relations: Theory, History and Policy New York: Harper & Row.

wndidiinedl —

Ai

~ ane vi, tus

ake

vRE

4

4

Geoeastasiinae tee

vd>

les

A tbeprgtcaon

cedeanialanes ah ma ‘a 3 i

inn core

nn

ad &

‘Vong

atte

9 aqiinh

-

oe

1 ce be 1.

ve

eB Tesh

id OFFil A

Loe? am ar M2 a dys ore tuwe | ™ ar ie

bal)

clare

aan

tal neds hy Lied yh

Raina

bs fans.

Sota

th ty _— Ora

a

Ratu rhe als

pontenngatin wean Hh te" te his Lb any ae ‘ (peel

aig er ailitscman ay

sgyaiups

aia. f fi a

AL

;

7 ‘age t

rade

see Ste ,x, oseniy

attri :

on

¢ roe

=

‘Rallgreata) ie Sai ny, a silsldaa's Ci Riote t ; LAs messeo? iran a” bere

jo hae. “aGuille* P ei

a

:

nr

rcs

Meaney

i

Ra) yA

¥%

Ry

bi | ue

* - aa

woe

=

See

aT 45

(Fru,

ee

Su

et

OrisE'

Ss erat

Gua

taivnaverecsatys ui ai , nag

ro

roe

y

Viewer ipare

‘

oan

at A URGES

sir” ides waese

ay

2043

-OuG

ide r% bee

4 10 Prue wit? to> ame!‘ont?

“eet ae sn AEN

Wiett. J 42401) 1

AN

Dien Sate & =

eek

itwa iT net)

am eg cis"

“aloe” Co We

ee, 0, it ‘ar

hg

vit on ah y a4 ws

od

ee) “ut

a,b,

AT

“oe ; adele bia ‘

De

ee

;

7

or

wicwal

=

4,

Sete, M

Name Index

Aftalion, A., 118n22 Aldenham, Baron see Hucks-Gibbs, H. Arnon, A., 45n14, 47n25

Bagehot, W., 8, 9, 21, 24, 34, 35, 3640, 42, 100, 116n12, 176, 181, 184, 185, 194 Bailey, R., 150n15 Barbour, D. M. (Sir David), 88n31, 168, 190n10 Barkai, H., 149n2 Baumol, W., 24, 45n18 Becker, G., 24, 45n18 Bickerdike, C., 111

Blomqvist, A., 84n2 Boehm-Bawerk,

E. von, 129

Bordo, M., 13, 43n4, 86n13, 152n29, 188n1 Bridel, P., 86n9n10

Edgeworth, F. Y., 37, 69, 87n22, 150n9, 171, 172, 176, 184-7, 191n15, 192n22, 193, 194, 196 Engels, F., 20, 145 Eshag, E., 86n9, 88n32

Fetter, F. W., 2, 7, 45nl4n18, 47n25, 191n13 Fisher, I., 3, 4, 46n20, 49-88, 90-5, 101, 102, 104, 112-13, 117n21, 124, 129, 136, 139, 141, 142, 143-4, 147, 158-9, 168, 170-1, 174, 176-8, 188, 188n1, 189n7, 190n12, 193, 195 Foxwell, H. S., 153-4, 174, 199n2 Friedman, M., 79, 82, 116n6, 155, 189n8, 190n11, 192n20n21

Bryan, W. J., 165

Giffen, R., 34, 161-3, 164, 176, 188, 189n8, 19In15 Glasner, D., 39, 192n22

Caines, J. lle 12213 17-18) 3021. 41-2, 46n22, 156

Goodhart, C. A. E., 192n19 Goschen, G. J., 28

Cannan, E., 44n10 Cantillon, R., 11, 12, 17

Gray, M., 192n23 Grenfell, H. R., 160, 161, 189n3 Guillebaud, C., 116n12

Carver, T. N., 87n21, 118n22 Cassel, G., 151n22, 152n25 Cernuschi, H., 85n6, 157 Chen, C. N., 188n1 Chevalier, M., 30-1, 156 Chipman, J., 118n22 Clark, J. M., 111 Corry, B., 45n15

Haberler, G., 118n23 Hankey, T., 36 Harrington, R., 86n15 Harrod, R., 152n23 Hawtrey, R., 19, 91, 95, 100-14, 178,

179, 188, 193, 199n2

Cottrell, A., 151n17

Hayek, F. A. von, 17, 19, 44n10, 119,

Deutscher, P., 44n12, 109, 114

Hegeland, H., 43n7

Dornbusch,

Hicks, J. R., 24, 64, 152n23, 196

146 R., 110

Dowd, K., 192n22

Hildreth, C., 192n23

213

214

NAME

INDEX

Hobson, J. A., 89 Hollander, S., 20, 24, 40, 44n8n9, 45n16 Horton, S. D., 31, 32, 46n23, 155, 170 Howitt, P. W., 151n17 Hucks-Gibbs,

H. (Baron Aldenham),

85n6, 160, 189n3, 190n9 Hume, D., 11, 17, 26, 65, 68, 87n19, 103 Humphrey, T. M., 86n13

Jaffé, W., 59-60, 188n2 Jevons, W. S., 7-8, 9, 10, 11, 12, 20, 24, 27, 30, 31, 32, 33, 34-5, 37, 39, 41-2, 43n2, 79, 89, 97, 99, 111, 117n20, 118n25, 129, 131, 141, 156-7, 159-60, 173-4, 183, 189n8

Marshall, M. P., 26, 89-90, 96-8, 114 Marx, K., 20, 44n13, 120, 145 Mason, R. S., 189n4

Menger, C., 47n28 Mill, J. S., 7, 8, 9, 10, 11, 14-15, 1619, 20, 23-6, 27, 28-9, 33-4, 41, 42, 43n1n6, 45n18, 47n27, 51, 54, 69, 83, 87n20, 185, 189n3, 195 Mises, L. von, 19, 86n16, 119, 122, 146, 149n4, 150n8, 152n27 Mitchell, W. C., 84n1, 88n28 Myhrman, J., 148. Newcomb, S., 69 Newman, P., 192n23 Newmarch, H., 79 Nicholson, J. S., 85n6, 189n4

Jonung, L., 150n14, 151n22, 152n29

Juglar, C., 20, 116n7, 117n20

Ohlin, B., 119, 133 Overstone, Lord, 89

Kahn, R., 149, 150n7, 151n18, 152n30 Kemmerer, E. W., 80 Keynes, J. M., 42, 45n15, 53, 54, 56,

59, 61, 64-5, 68, 82, 86n16, 116n11, 119, 140, 148-9, 152n23, 166, 168-9, 177, 178, 190n12, 191n17, 196, 197 Kirtzner, I., 150n8 Kohn, M., 18, 44n8& Kompas, T., 150n12n13n16 Kydland, F., 115n1

Parkin, J. M., 192n23 Patinkin, D., 47n28, 72, 86n9, 118n24, 125, 150n15, 151n20 Peart, S., 44n13, 99, 117n20 Pigou, A. C., 53, 56, 57, 58, 61, 63, 64, 68-9, 85n4, 87n21, 95, 97-100, LO O2s 2: 117n14n16n19n20, 124, 178, 191n16, 199n2 Prescott, E., 115nl Presnell, L. R., 181

Laidler, D., 44n13, 45n14n18, 46n20n22, 47n25n26, 86n9, 150n14n15, 191n13n14 Laughlin, J. L., 75, 86n18, 88n28, 122, 154, 163-4 Lavington, F., 196 Leijonhufvud, A., 149, 197 Lowe, J., 174 Lucas, R. E., Jr, 149n5 Lundberg, E., 152n30

Price, B., 160

Raff, H., 150n7, 151n18, 152n27 Ricardo, D., 6nl, 27, 45n17, 69, 129,

170, 171, 176 Robbins, L., 19, 119 Robertson, D. H., 19, 89, 103, 115n2,

117n16, 118n22 Rockoff, H., 84n2 Rolnick, A., 46n20

Malthus, T. R., 17, 24-5 Marget, A., 59, 88n30

Sargent, T., 189n7

Marshall, A., 1, 3, 4, 5, 7, 10-11, 26, 40, 41, 51-2, 53-68, 83, 84, 87n22, 89-90, 91, 95-8, 100-4, 114, 129, 136, 138, 140, 143-4, 147, 150n8, 161, 166-7, 168, 171-2, 174, 175-8, 179, 181-2, 187, 188, 189n5, 195

Schwartz, A. J., 79, 82, 116n6, 155, 190n11, 192n20n21 Scrope, P., 174 Selgin, G., 192n22 Senior, N. W., 11, 51, 121

Say, J.-B., 24, 123

Smith, A., 27, 28, 45n17, 189n3 Sprague, O., 116n6, 183-4, 192n20

NAME

Thornton, H., 17, 27, 36, 44n10,

115n4, 116n9, 150n11 Tooke, T., 45n14, 47n26, 79, 129, 149n6

Uhr, C., 150n11 Viner, J., 45n14 Walker, F. A., 8-9, 46n23, 87n20, 155, 165, 168, 188n1

INDEX

215

Warburton, C., 82 Weber, W., 46n20 Whitaker, J., 85n3, 116n12

White, L., 46n24 Wicksell, K., 3, 4, 19, 53, 60, 67, 85n7, 87n20n23n26, 117n17, 119-52, 159, 178-80, 184, 186-7, 188, 189n7, 192n22, 193, 195, 197 Wilde, O., 50 Williams, A., 176, 190n12

Wallace, N., 189n7

Wilson, J., 36 Wonnacott, P. and R., 84n2

Walras, L., 32, 41, 52, 59, 60, 158-9, 161, 170-1, 191n16

Yeager, L., 154

oy) tnd

“s

TA¢. 74 itt

ey

ie.”

OF-Ra

(ee 1a,

Oe

APS

Subject Index

accelerator, 111-12, 114

booms, 21, 22, 91, 100

agricultural output see harvest; sunspot theory

see also upswing British Association for the Advancement of Science, 191n15 British monetary orthodoxy, 2, 3, 7-47 bullion see gold; silver; specie

anticipated inflation, 19 appreciation see inflation apprehension minimum, 38 Austrian cycle theory, 119, 122,

150n14, 152n27, 197 Austro-Hungary, monetary standard,

169

Bullionist Controversy, 27, 29 business cycle, 20, 41, 119 see also credit cycle; trade cycle

autumnal pressure, 183

Cambridge Monetary Theory, 7, 53-4 backing theory of the value of money,

122 bad money v. good money, 30, 157 balance of payments, 26-9, 87n19 Bank Charter Act (1844), 12, 21-2, 33,

Cambridge School, 49-88, 193

see also cash balance approach capital, 129-30, 131-2 capital flows, 28 capitalists, 131, 132

35, 46n19, 182 bank deposits, 70

cash balance approach, cash balance

Bank of England, 21-3, 33, 36-40,

101-2, 105, 125-7, 147, 148 cash economy, 123-7

46n19, 181 bank notes, 13, 15 banking, 36-40, 106-9, 180-7

see also Bank of England; United States, banking Banking School v. Currency School, 12, 14-15, 21-3, 27-8, 35-6, 47n26, 149n6 banks see Bank of England; Scottish banks Baring crisis, 181 barter, 9, 83

billon, 170 Bimetallic League, 190n9 bimetallism, 29-32, 50-3, 84n2, 87n32, 149n3, 153-72 Birmingham School, 32 Bland Act (1878), 190n11

mechanics, 26, 51, 59-60, 77,

central banking, 36-40, 180-4

see also Bank of England; United States, banking ceteris paribus, 79, 122-3 channel of circulation, 27 China, monetary standard, 31

choice theoretic approach, 41 circulating media, 13-14, 27, 69-70

classical dichotomy, 123 classical theory, 7-47 coin see money, definition commodity convertibility, 34 compensated dollar, 176-7 contractual rate of interest, 132

co-operative movement, 191n16 cost of production theory, 51, 56, 120-

3, 160 217

218

SUBJECT INDEX

cost-push inflation, 86n18 Country banks, 21, 22, 37

credit, 14-15, 17, 127-9 credit cycle, 20, 23, 41

see also business cycle; trade cycle credit economy, 125, 127-9 credit multiplier, credit expansion, 14, 84, 88n32 crime of 1873, 155 crises, 20-4, 94, 183

see also panics cross of gold, 165 cumulative process, 67, 135-9, 193

currency see money, definition Currency School v. Banking School, 12, 14-15, 21-3, 27-8, 35-6, 47n26, 149n6

currency-deposit ratio, 86n17 cycle, Austrian theory, 119, 122, 150n14,

152n27, 197 classical theory, 20-6, 41-2 Hawtrey’s theory, 100-12

neoclassical theory, 89-118 Wicksell’s theory, 143-6 demand for money, 26, 51, 54-5, 59-64

deposits, bank, 70 depression, 91, 96, 100 discount rate, 65, 67 downswing, 95, 96, 100, 108

employment, 96, 103-4, 105-6 see also unemployment entrepreneurs, 131-5 equation of exchange, 16, 68-76

equation of international demand, 28 exchange rate overshooting, 110 expectations, rational, 135 expected inflation, 62, 63, 87n24

exports, 28-9 external drain, 21, 24, 38-9 Federal Reserve System, 42, 50, 183-4

fiduciary value, 58 financial crises see crises Fisher effect, 44n10, 77-8 fixed investment, 111, 117n15 fluctuations see cycle forced savings, 18, 19, 41-2 France, monetary standard, 30-1, 49, 154, 155 free banking, 35, 192n

Free Trade principle, 161-2 general glut of commodities, 24-5, 43nl, 45n16n18 see also Say’s Law Germany, monetary standard, 49, 154, 155, 169 Reichsbank, 182

gluts see general glut of commodities gold, convertibility, 34-5, 42, 49 discoveries 11-12, 30, 143, 165-6,

173 flows, 110-11 inflows, 18 monometallism,

‘

154-6, 159-66

supply, 56, 58, 65-6, 75-6, 138 see also bimetallism Gold Exchange Standard, 2, 42, 166,

168-70, 194, 195, 198 Gold and Silver Commission, 51-2, 53,

57, 64, 65, 67, 97, 164-5, 166, 172, 189n4, 191n17 Gold Standard, 2-3, 5, 29-32, 49-50,

154-6, 164-5, 194 good money v. bad money, 30, 157 greenbacks, 75 : Gresham’s Law, 30, 32, 46n20, 154 harvest, 98 Historical School, 120 hoarding, 43n6, 72, 96

Importance of Being Earnest, The, 84n2 imports, 28-9 gold, 18 income, velocity, 124-6, 127-9 inconvertible money, 9-10, 29, 33 indexation, 172-8 see also tabular standards India,

gold and silver prices, 189n4 monetary standard, 31, 50, 168-9 Indian Currency Committee, 53, 58, 61, 62, 97, 181-2 inflation,

anticipated, 19 cost-push, 86n18 and depression, 91 expected, 62, 63, 87n24 and interest rates, 65, 77-8, 92-5,

102, 129-35, 139-40

SUBJECT INDEX inflationism, 32 institutional influences on price level, 56-60 institutions, 153-92 interest rates, and inflation, 65, 77-8, 92-5, 102,

129-35, 139-40 natural, 18 nominal-real distinction, 90-5, 102 internal drain, 21, 38-9, 104, 116n6,

182 international monetary system, 49-50, 166-70, 179 interval of rest, 85n7, 125-6 intervention, policy, 198 investment, fixed, 111, 117n15 Keynesian economics, 62, 197-8 Latin Union, monetary standard, 49,

155 law of error, law of large numbers,

128, 185 Law of the Year Eleven (1803), 154 legal tender money, 57-8, 107, 117n19 lender of last resort, Bank of England,

36 limping standard, 170 liquidity preference, 63-4, 86n9 loanable funds theory, 18 London banks, 37

lower turning point, 24 managed money, 2, 178-80 Manchester Statistical Society, 20, 41

219

stickiness monometallism,

alternating, 32 gold, 154-6, 159-66 multiplier, 114 national banks see central banking National Monetary Commission, 183 natural rate of interest, 18 neutrality of money, 18-19, 79 nominal interest rate, 139-40 nominal-real interest rate distinction,

90-5, 102 open economy, 26, 110 oversaving, 25

see also underconsumption panics, 21, 38-9

see also crises paper money, 9-10, 26-7, 33-4 paper standard, 179-80 parachute effect, 30, 31, 154, 157 Paris, Conference (1867), 35

policy intervention, 198 portfolio allocation approach, 61-2 precautionary motive, 125 precious metals see gold; silver; specie price level, classical theory, 8-16 institutional influences, 56-60

neoclassical theory, 49-88 see also inflation price-specie flow mechanism, 26

marginal analysis, 40-1 Marginal Revolution, 40 Marxian theory, 120 means of exchange, 13 monetary institutions, 153-92

probability, 125-6, 184-7

monetary orthodoxy, 2, 3, 7-47

Radcliffe Committee on the Working of the Monetary System, 109, 149

monetary policy, theory, 32-40 money, definition, 13-14, 69-70, 102, 124 demand for, 60-4 good v. bad, 30, 157 inconvertible, 9-10, 29, 33 legal tender, 57-8, 107, 117n19 managed, 2, 178-80 paper, 9-10, 26-7, 33-4 sound, 164

money proper, 57, 58 money wage stickiness see wage

productivity shocks, 115n1 public works, cure for unemployment, 198

rapidity of circulation, 15, 16, 59

see also velocity, income rational expectations, 135 real v. nominal interest rates, 90-5, 102 Reichsbank, 182 reserves, 104 resources, determinant of demand for money, 61

runs on the banks see crises; panics Russia, monetary standard, 50

220

SUBJECT INDEX

savings, forced, 18, 19, 41-2

Say’s Law, 45n15n16, 96, 129, 147 see also general glut of commodities Scandinavia, monetary standard, 4950, 155

transactions volumes, determinants, 71-6 transfer mechanism, 28 transition periods, 65, 66, 71, 76-9 transmission mechanism,

Scottish banks, 21, 22, 46n24, 169-70

Cambridge, 64-8

seasonal demand for currency,

classical theory, 16-19

183

Sherman Act (1890), 190n11 silver, monetary standard, 29-32, 154-68 see also bimetallism: Gold and Silver Commission sound money, 164 specie, 10, 26, 27

convertibility, 42 outflows, 21-2 stock, Bank of England, 36-7

see also gold; silver speculation, 23-4 stable bimetallism see symmetallism

standard of deferred payment v. unit of account, 9 statistical verification, 79-82

stock-flow distinction, 10-11, 43n7 Stockholm School, 119, 148-9, 150n14, 191n18 sunspot theory, 42, 44n13, 89, 99, 174 symmetallism, 87n22, 171-2, 191n17

Fisher, 76-9

Wicksell, 123, 138, 147 Treasury view, 112 ultimate regulator, 11

underconsumption, 89 see also oversaving unemployment public works as cure, 198 see also employment unit of account v. standard of deferred payment, 9 United States,

banking, 94, 181, 182-4, 186, 194 monetary standard, 30, 49, 154

upper turning point, 21-4 upswing, 93, 96, 102, 108

see also booms utilitarianism, 33

utility, 47n27 velocity,

tabular standards, 9, 34, 173-6 tastes, technology, endowments, 72

theory of value, 47n27 trade balances, 28 trade cycle, 89-90, 104-12

see also business cycle; credit cycle transactions motive, 125 transactions velocity, 16, 71-3

income, 125-6, 127-9 transactions, 16, 71-3

wage lag doctrine, 103-4 wage stickiness, 95-100, 102-4, 105-6 wealth, redistribution, 34

Wizard of Oz, The, 84n2 World War, I, 2

WN

av)

06th

=?

@

Pas

amie

¢

4, « —_a? ei

eo},

=

108 Gas va See. A i om Oe wes.00) a4

>i

lees1|

mage,

o-< 4.(Rall.

Sam

¥

7

Je or

wd

nh

es

e @

teen

66 7

ca 2%

4

4

Vb

&-

ew

Puatnd

oom,

4

~—,

6

—

ee

rae

¢ * ¢

Ge Ped a”

Se

«22s

a fac

We

B

,

ry4

vere ern, 64277 -

—

——

m a

rie

SS

is

e =»

|

are

ne:

SS

-

€art

n =n

.

>

: Smo

(Mar?

a seAdteney Ale

a>

me

' ~¢

=

i

tora geen, be

av ale Gane

2

ry

Gi,

i he

=A 0a

pe

5ae

>,

»

The

ee 6a

e's 3a Sh UV Ente, Steg ee | (ae

:

Carleton College ‘tle One Nori il College

Northfield, jviy5057 ab97

it

' o 4

J

ot

,

E

Deo

pyA,

ry

MOON Tt yt

ox TEV

ey

OOK

rade aaapeatatotyte

He wis pt tpana eet

i; itenteNete Hb

MereteBe Mitel Berke H ite if

ay

;

pata

asSARS LSSAN ex SEES

ed#43. eaee

Ae Bape

aay

We wy

Ue,

(ate aaa, , a an ahaa Ieae ba) Gk pens :

ot

aaa

SENULCCT I eH Tas ae, NH

Pe apr

meade

Asay i

i

es

1

th

ae

Tesh

1, Vie,

p?

att

Mads

oi

f avons

ie tee ietite

we

rset ts

Me

Tate,

?

Pk ‘e Ree,

oy

cM

A

i.

;

ar

fs

tay

tae

en

it

Hie

eating

aanny HS Oe,

Bi tegehe

Dies

tee Bhai

and

ey

f

eS

ie

rete

Helatt

rata ete REECE ne tata

21

ot,

We

ee tae

1

tisha

tens

TIOII HE,

Ae 4tgtyt,

ns, ;

Se

ae

ns aes

Chbokorta

re

~~.

oe Fecha bt SS Mariet te

yy ys

LH

i

‘

aeod i bn nga oe eee

Nyy

wy

yyAdy

Mo

th

Feetoy” ry te7

M,

ot

GD

tet Bote DER:

yas