IDEAS home Printed from https://ideas.repec.org/p/col/000178/006703.html
   My bibliography  Save this paper

Comparative Views on L. Walras and A. Cournot on The Regulation of Paper Money: Rules VS. Discretion at The End of The XIXth Century

Author

Listed:
  • Andrés Alvarez

    ()

Abstract

This paper presents Léon Walras and Augustin Cournot views on monetary regulation. Important differences can be found in their views about the convenience of the issuing of paper money and fiat money in general. Whereas Walras is against bank notes, even if coming from a central bank, Cournot has a moderate position. He accepts the need for bank notes even without a strict adjustment to metal reserves. It can be ascertained that Cournot believes discretionary monetary regulation is convenient and acceptable, while Walras believes the only acceptable monetary system is one based exclusively on the stability of the value of money under a monetary rule following the strict equivalence between metallic reserves and a pure medium of exchange form of money. This paper shows Cournot´s ability to understand more clearly than Walras the evolution of the monetary system of his days. Whereas Walras is trying to guarantee the coherence of his pure theory with his applied theory, and he is then unable to accept the evolution toward a monetary system based on fiat money and he proposes very rigid and complex system of quasi-bimetallic circulation where banks are simple mediators between entrepreneurs and savings.

Suggested Citation

  • Andrés Alvarez, 2010. "Comparative Views on L. Walras and A. Cournot on The Regulation of Paper Money: Rules VS. Discretion at The End of The XIXth Century," DOCUMENTOS DE TRABAJO - ESCUELA DE ECONOMÍA 006703, UN - RCE - CID.
  • Handle: RePEc:col:000178:006703
    as

    Download full text from publisher

    File URL: http://www.fce.unal.edu.co/media/files/documentos/Comunicaciones/docalvarez_fce__ee_12.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Rodolphe Dos Santos Ferreira, 2004. "Guerre et paix. Variations sur la notion de concurrence au siècle de Cournot," Revue économique, Presses de Sciences-Po, vol. 55(3), pages 543-556.
    2. Xavier Greffe & Jérome Lallement & Michel De Vroey, 2002. "Dictionnaire des grandes oeuvres économiques," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00272064, HAL.
    3. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    4. Edgeworth, Francis Ysidro, 1881. "Mathematical Psychics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number edgeworth1881.
    5. James W. Friedman, 2000. "The legacy of Augustin Cournot," Cahiers d'Économie Politique, Programme National Persée, vol. 37(1), pages 31-46.
    6. Carlo Benetti, 1997. "El método normativo de la teoría económica positiva (Traducción de José Félix Cataño)," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Central Bank; Paper-Money; History of Monetary Thinking; Léon Walras; Augustin Cournot.;

    JEL classification:

    • B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Wicksellian)
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:col:000178:006703. 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: (Facultad de Ciencias Económicas Unal). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.