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Retrospectives: An Early Supply-Side-Demand-Side Controversy: Petty, Law, Cantillon

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  • John Berdell

Abstract

Early modern Europe in the late seventeenth and early eighteenth centuries witnessed an unprecedented increase in the rate of economic growth, and governments entertained a wide range of proposals aimed at developing and harnessing foreign trade and emerging financial markets. In his magisterial survey of foreign trade doctrine titled Studies in the Theory of International Trade (1936), Jacob Viner pointed out that enlightened authors of that time were often nonbullionist mercantilists: they favored export promotion and import reduction not on the grounds that it would lead to an accumulation of gold, but on the grounds that it would increase trade and employment. My focus here is on how some key economists of this time period—William Petty, John Law, and Richard Cantillon—adumbrated disputes between supply-side and demand-side macroeconomics that have continued to the present day.

Suggested Citation

  • John Berdell, 2010. "Retrospectives: An Early Supply-Side-Demand-Side Controversy: Petty, Law, Cantillon," Journal of Economic Perspectives, American Economic Association, vol. 24(4), pages 207-217, Fall.
    • Handle: RePEc:aea:jecper:v:24:y:2010:i:4:p:207-17
    Note: DOI: 10.1257/jep.24.4.207
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.24.4.207
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    References listed on IDEAS

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    1. Richard Stone, 1986. "Nobel memorial lecture 1984. The accounts of society," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 5-28, January.
    2. Anthony Brewer, 2005. "Cantillon, Quesnay, and the Tableau Economique," Bristol Economics Discussion Papers 05/577, School of Economics, University of Bristol, UK.
    3. Murphy, Antoin E., 1997. "John Law: Economic Theorist and Policy-maker," OUP Catalogue, Oxford University Press, number 9780198286493.
    4. Carl Wennerlind, 2003. "Credit-Money as the Philosopher's Stone: Alchemy and the Coinage Problem in Seventeenth-Century England," History of Political Economy, Duke University Press, vol. 35(5), pages 234-261, Supplemen.
    5. François R. Velde, 2007. "John Law's System," American Economic Review, American Economic Association, vol. 97(2), pages 276-279, May.
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    Cited by:

    1. John Berdell, 2013. "Casualties of Credit: The English Financial Revolution, 1620--1720," Review of Political Economy, Taylor & Francis Journals, vol. 25(2), pages 360-363, April.
    2. Simon Bilo, 2018. "Lucas and Hume on Monetary Non-neutrality: A Tension between the Logic and the Technique of Economics," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(3), pages 364-380, June.
    3. Ruohan Wu, 2023. "Contingent impacts of COVID relief policies under global value chain shortage," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(4), pages 877-914, October.

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    More about this item

    JEL classification:

    • B11 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Preclassical (Ancient, Medieval, Mercantilist, Physiocratic)
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals

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