IDEAS home Printed from https://ideas.repec.org/a/prs/reveco/reco_0035-2764_1994_num_45_5_409606.html
   My bibliography  Save this article

Ricardo's Theory of Money Matters

Author

Listed:
  • Maria Cristina Marcuzzo
  • Annalisa Rosselli

Abstract

[fre] Ricardo's Theory of Money Matters. . Dans cet exposé on analyse trois reproches adressés communément à la théorie monétaire de Ricardo : la monnaie-marchandise, la neutralité de la mon­naie et la conception d'équilibre à long terme. Le premier, que l'identification de la monnaie avec l'or empêche Ricardo de saisir le sens du papier-monnaie et, par conséquent de comprendre pleinement ses propriétés. Le deuxième, que Ricardo est le champion de la théorie quantitative de la monnaie et qu'il refuse de voir les effets réels des variations dans les variables nominales. Le troisième, que Ricardo porte une attention exclusive aux phénomènes permanents au détriment de l'analyse des phénomènes à court terme. Notre analyse affronte ces reproches et propose une interprétation alternative de la théorie monétaire de Ricardo. [eng] Ricardo's theory of money matters. . In this paper three common charges against Ricardo's monetary theory are evaluated : the commodity-money fallacy, the neutrality of money and the long-period view. According to the first, Ricardo's identification of money with gold prevented him from coming to grasp with paper-money and therefore fully understanding the properties of money. According to the second, Ricardo is the champion of the quantity theory of money and failed to see the real effects of variations in nominal variables. According to the third, Ricardo gave exclusive attention to permanent phenomena to the detriment of analysis of short-period disturbances. The paper challenges these views and provides an alternative interpretation of Ricardo's monetary theory.

Suggested Citation

  • Maria Cristina Marcuzzo & Annalisa Rosselli, 1994. "Ricardo's Theory of Money Matters," Revue Économique, Programme National Persée, vol. 45(5), pages 1251-1268.
    • Handle: RePEc:prs:reveco:reco_0035-2764_1994_num_45_5_409606
    as

    Download full text from publisher

    File URL: https://www.persee.fr/doc/reco_0035-2764_1994_num_45_5_409606
    Download Restriction: Data and metadata provided by Persée are licensed under a Creative Commons "Attribution-Noncommercial-Share Alike 3.0" License http://creativecommons.org/licenses/by-nc-sa/3.0/
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Will E. Mason, 1977. "Winners and Losers: Some Paradoxes in Monetary History Resolved and Some Lessons Unlearned," History of Political Economy, Duke University Press, vol. 9(4), pages 476-489, Winter.
    2. Fremling, Gertrud M., 1986. "A specie-flow model of the gold standard," Journal of International Money and Finance, Elsevier, vol. 5(1), pages 37-55, March.
    3. Bordo, Michael David & Ellson, Richard Wayne, 1985. "A model of the classical gold standard with depletion," Journal of Monetary Economics, Elsevier, vol. 16(1), pages 109-120, July.
    4. Laidler, David, 1991. "The Quantity Theory Is Always and Everywhere Controversial--Why?," The Economic Record, The Economic Society of Australia, vol. 67(199), pages 289-306, December.
    5. Thomas M. Humphrey, 1990. "Ricardo versus Thornton on the appropriate monetary response to supply shocks," Economic Review, Federal Reserve Bank of Richmond, vol. 76(Nov), pages 18-24.
    6. Barro, Robert J, 1979. "Money and the Price Level under the Gold Standard," Economic Journal, Royal Economic Society, vol. 89(353), pages 13-33, March.
    7. Maria Cristina Marcuzzo & Annalisa Rosselli, 1994. "The standard commodity and the standard of money," Cahiers d'Économie Politique, Programme National Persée, vol. 23(1), pages 19-31.
    8. Roy Green, 1982. "Money, Output And Inflation In Classical Economics," Contributions to Political Economy, Oxford University Press, vol. 1(1), pages 59-85.
    9. Marcuzzo, Maria Cristina & Rosselli, Annalisa, 1987. "Profitability in the International Gold Market in the Early History of the Gold Standard," Economica, London School of Economics and Political Science, vol. 54(215), pages 367-380, August.
    10. Thomas M. Humphrey, 1974. "The quantity theory of money : its historical evolution and role in policy debates," Economic Review, Federal Reserve Bank of Richmond, vol. 60(May), pages 2-19.
    11. Robert L. Hetzel, 1987. "Henry Thornton: seminal monetary theorist and father of the modern central bank," Economic Review, Federal Reserve Bank of Richmond, vol. 73(Jul), pages 3-16.
    12. Garegnani, Pierangelo, 1983. "The Classical Theory of Wages and the Role of Demand Schedules in the Determination of Relative Prices," American Economic Review, American Economic Association, vol. 73(2), pages 309-313, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Costabile, Lilia, 2022. "Commodity money, natural values, and central banking in Ricardo," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 104-111.
    2. Ghislain Deleplace, 2020. "Orthodox versus Unorthodox Views on Ricardo’s Theory of Money," Post-Print hal-04253395, HAL.
    3. Talknice Saungweme & Nicholas M. Odhiambo, 2021. "Inflation and Economic Growth in Kenya: An Empirical Examination," Advances in Decision Sciences, Asia University, Taiwan, vol. 25(3), pages 1-25, September.
    4. David Andrews, 2000. "Keynes, Ricardo and the classical theory of interest," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 7(2), pages 228-244.
    5. T. Saungweme & N.M. Odhiambo, 2021. "Inflation and Economic Growth in Kenya: An Empirical Examination," Working Papers AESRI-2021-13, African Economic and Social Research Institute (AESRI), revised Oct 2021.
    6. Annalisa Rosselli, 1999. "The Origin of the Political Economy of Money," Review of Political Economy, Taylor & Francis Journals, vol. 11(4), pages 443-454.
    7. Ghislain Deleplace, 2019. "“Orthodox versus Unorthodox Views on Ricardo’s Theory of Money”," Post-Print hal-04429116, HAL.
    8. Talknice Saungweme & Nicholas M. Odhiambo, 2021. "Inflation and Economic Growth in Kenya: An Empirical Examination," Advances in Decision Sciences, Asia University, Taiwan, vol. 25(3), pages 1-25, September.
    9. Talknice Saungweme & Nicholas M. Odhiambo, "undated". "Inflation And Economic Growth In Kenya: An Empirical Examination," Working Papers AESRI04, African Economic and Social Research Institute (AESRI).
    10. Ciccone, Michele, 2022. "Some notes on Ricardo's analysis of the convergence process of the market rate of interest to the natural rate," MPRA Paper 112887, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wei-Bin Zhang, 2016. "Exchange Values of Gold, Land, Physical Capital, and Human Capital in a Neoclassical Growth Model," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 265-286, September.
    2. Emilio Ocampo, 2020. "The Global Disinflation Puzzle. A Selective Review of the Theory and Evidence in an Historical Context," CEMA Working Papers: Serie Documentos de Trabajo. 726, Universidad del CEMA.
    3. Wei-Bin Zhang, 2019. "Endogenous Population In A Neoclassical Growth Model With Wealth And Time Values," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 4(5), pages 47-63, May.
    4. Zhang Wei-Bin, 2016. "Gold And Land Prices With Capital Accumulation In An Economy With Industrial And Agricultural Sectors," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 16-29, April.
    5. Wei-Bin Zhang, 2018. "Business Cycles in a Three-sector Growth Model with Portfolio Equilibrium between Land, Gold and Capital," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 12(2), pages 171-196, May.
    6. Michael D. Bordo & John Landon Lane & Angela Redish, 2004. "Good versus Bad Deflation: Lessons from the Gold Standard Era," NBER Working Papers 10329, National Bureau of Economic Research, Inc.
    7. Robert L. Hetzel, 2016. "The Rise and Fall of the Quantity Theory in Nineteenth Century Britain: Implications for Early Fed Thinking," Economic Quarterly, Federal Reserve Bank of Richmond, issue Q4, pages 281-320.
    8. Michael D. Bordo & Barry Eichengreen, 1998. "Implications of the Great Depression for the Development of the International Monetary System," NBER Chapters, in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 403-454, National Bureau of Economic Research, Inc.
    9. Wei-Bin Zhang, 2015. "A Portfolio Equilibrium Model of Gold and Capital in an Integrated Walrasian General Equilibrium and Neoclassical Growth Theory," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(12), pages 616-627, December.
    10. Robert L. Hetzel, 2008. "What is the monetary standard, or, how did the Volcker-Greenspan FOMCs tame inflation?," Economic Quarterly, Federal Reserve Bank of Richmond, vol. 94(Spr), pages 147-171.
    11. Bordo, Michael D. & Schwartz, Anna J., 1999. "Monetary policy regimes and economic performance: The historical record," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 3, pages 149-234, Elsevier.
    12. Wei-Bin Zhang, 2016. "Gold Value With Tradable And Non-Tradable Goods In A Multi- Country Growth Model With Free Trade," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 14(1), pages 35-52, May.
    13. Rockoff, Hugh & White, Eugene N., 2012. "Monetary Regimes and Policy on a Global Scale: The Oeuvre of Michael D. Bordo," MPRA Paper 49672, University Library of Munich, Germany, revised May 2013.
    14. Jagjit S. Chadha, 2018. "Of Gold and Paper Money," Manchester School, University of Manchester, vol. 86(S1), pages 1-20, September.
    15. Ftiti, Zied & Aguir, Abdelkader & Smida, Mounir, 2017. "Time-inconsistency and expansionary business cycle theories: What does matter for the central bank independence–inflation relationship?," Economic Modelling, Elsevier, vol. 67(C), pages 215-227.
    16. Gerlach, Stefan & Stuart, Rebecca, 2021. "International Co-movements of Inflation, 1851-1913," CEPR Discussion Papers 15914, C.E.P.R. Discussion Papers.
    17. A. Malliaris & Mary Malliaris, 2013. "Are oil, gold and the euro inter-related? Time series and neural network analysis," Review of Quantitative Finance and Accounting, Springer, vol. 40(1), pages 1-14, January.
    18. Bellino, Enrico & Nerozzi, Sebastiano, 2013. "Causality and interdependence in Pasinetti's works and in the modern classical approach," MPRA Paper 52179, University Library of Munich, Germany.
    19. Neri Salvadori & Rodolfo Signorino, 2016. "Competition," Chapters, in: Gilbert Faccarello & Heinz D. Kurz (ed.), Handbook on the History of Economic Analysis Volume III, chapter 6, pages 70-81, Edward Elgar Publishing.
      • Salvadori, Neri & Signorino, Rodolfo, 2011. "Competition," MPRA Paper 38387, University Library of Munich, Germany.
    20. António Portugal Duarte & João Sousa Andrade, 2012. "How the Gold Standard functioned in Portugal: an analysis of some macroeconomic aspects," Applied Economics, Taylor & Francis Journals, vol. 44(5), pages 617-629, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prs:reveco:reco_0035-2764_1994_num_45_5_409606. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Equipe PERSEE (email available below). General contact details of provider: https://www.persee.fr/collection/reco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.