Ricardo versus Thornton on the appropriate monetary response to supply shocks
David Ricardo (1772-1823) recommended countering supply shocks with monetary contraction. Henry Thornton (1760-1815) advised a constant-money response. Their views hinged (1) on the neutrality or non-neutrality of money-stock changes on real output and employment and (2) on the costs of inflation. These same considerations influence Federal Reserve policy in response to oil shocks today.
Volume (Year): (1990)
Issue (Month): Nov ()
|Contact details of provider:|| Web page: http://www.richmondfed.org/|
More information through EDIRC
|Order Information:|| Web: http://www.richmondfed.org/publications/ Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Charles F. Peake, 1978. "Henry Thornton and the Development of Ricardo's Economic Thought," History of Political Economy, Duke University Press, vol. 10(2), pages 193-212, Summer.
- O'Brien, D P, 1981. "Ricardian Economics and the Economics of David Ricardo," Oxford Economic Papers, Oxford University Press, vol. 33(3), pages 352-86, November.
- James C. W. Ahiakpor, 1985. "Ricardo on Money: The Operational Significance of the Non-Neutrality of Money in the Short Run," History of Political Economy, Duke University Press, vol. 17(1), pages 17-30, Spring.
- Matthew D. Shapiro, 1987.
"Supply Shocks in Macroeconomics,"
NBER Working Papers
2146, National Bureau of Economic Research, Inc.
- Robert M. Solow, 1980. "What to Do (Macroeconomically) When OPEC Comes," NBER Chapters, in: Rational Expectations and Economic Policy, pages 249-267 National Bureau of Economic Research, Inc.
- Fischer, Stanley, 1985. "Supply Shocks, Wage Stickiness, and Accommodation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 17(1), pages 1-15, February.
When requesting a correction, please mention this item's handle: RePEc:fip:fedrer:y:1990:i:nov:p:18-24:n:v.76no.6. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (William Perkins)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.