IDEAS home Printed from https://ideas.repec.org/p/fip/fedrwp/03-13.html
   My bibliography  Save this paper

Classical deflation theory

Author

Listed:
  • Thomas M. Humphrey

Abstract

Classical economists David Hume, Pehr Niclas Christiernin, Henry Thornton, David Ricardo, Thomas Attwood, and Robert Torrens looked beyond the redistributive (creditor-debtor) effects of deflationary monetary contraction to its adverse effects on output and employment. They attributed these effects to price-wage stickiness; to rises in real debt, tax, and cost burdens; to cash hoarding in anticipation of future price falls; and to other determinants. Addressing deflation associated with post-war resumption of gold convertibility at the old mint par, they advocated policies ranging from gradualism, to devaluation, and even to outright abandonment of the gold standard in order to avoid or mitigate deflation?s harm.

Suggested Citation

  • Thomas M. Humphrey, 2003. "Classical deflation theory," Working Paper 03-13, Federal Reserve Bank of Richmond.
    • Handle: RePEc:fip:fedrwp:03-13
    as

    Download full text from publisher

    File URL: http://www.richmondfed.org/publications/research/working_papers/2003/wp_03-13.cfm
    Download Restriction: no
    File URL: https://www.richmondfed.org/-/media/RichmondFedOrg/publications/research/working_papers/2003/pdf/wp03-13.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas M. Humphrey, 1982. "Of Hume, Thornton, the quantity theory, and the Phillips curve," Economic Review, Federal Reserve Bank of Richmond, vol. 68(Nov), pages 13-18.
    2. Hicks, J. R., 1979. "Critical Essays in Monetary Theory," OUP Catalogue, Oxford University Press, number 9780198284239, Decembrie.
    3. Cesarano, Filippo, 1983. "The Rational Expectations Hypothesis in Retrospect," American Economic Review, American Economic Association, vol. 73(1), pages 198-203, March.
    4. Cesarano, Filippo, 1998. "Hume's specie-flow mechanism and classical monetary theory: An alternative interpretation," Journal of International Economics, Elsevier, vol. 45(1), pages 173-186, June.
    5. Laidler,David, 1999. "Fabricating the Keynesian Revolution," Cambridge Books, Cambridge University Press, number 9780521641739, Enero-Abr.
    6. David Laidler, 2000. "Highlights of the Bullionist Controversy," University of Western Ontario, Departmental Research Report Series 20002, University of Western Ontario, Department of Economics.
    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. Goetz von Peter, 2005. "Debt-Deflation: Concepts, and a Stylised Model," Macroeconomics 0505001, 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. Thomas M. Humphrey, 2004. "Classical deflation theory," Economic Quarterly, Federal Reserve Bank of Richmond, vol. 90(Win), pages 11-32.
    2. Arie Arnon, 2007. "The Early Round Of The Bullionist Debate 1800-1802: Boyd, Baring And Thornton’S Innovative Ideas," Working Papers 0714, Ben-Gurion University of the Negev, Department of Economics.
    3. Mauro Boianovsky, 2004. "The IS-LM Model and the Liquidity Trap Concept: From Hicks to Krugman," History of Political Economy, Duke University Press, vol. 36(5), pages 92-126, Supplemen.
    4. Agnès Festré, 2002. "Money, Banking and Dynamics: Two Wicksellian Routes from Mises to Hayek and Schumpeter," American Journal of Economics and Sociology, Wiley Blackwell, vol. 61(2), pages 439-480, April.
    5. Charles van Marrewijk, 2004. "An introduction to international money and foreign exchange markets," International Finance 0410006, University Library of Munich, Germany.
    6. Coenen Günter & Orphanides Athanasios & Wieland Volker, 2004. "Price Stability and Monetary Policy Effectiveness when Nominal Interest Rates are Bounded at Zero," The B.E. Journal of Macroeconomics, De Gruyter, vol. 4(1), pages 1-25, February.
    7. Béraud, Alain, 2003. "Keynes et Pigou sur le salaire monétaire et l’emploi : une synthèse du débat," L'Actualité Economique, Société Canadienne de Science Economique, vol. 79(1), pages 147-162, Mars-Juin.
    8. Siven, Claes-Henric, 2000. "Analytical Foundations of Erik Lindahl's Monetary Analysis, 1924-30," Research Papers in Economics 2000:14, Stockholm University, Department of Economics.
    9. Thomas M. Humphrey, 2000. "Monetary policy frameworks and indicators for the Federal Reserve in the 1920s," Working Paper 00-07, Federal Reserve Bank of Richmond.
    10. Haavio, Markus & Mendicino, Caterina & Punzi, Maria Teresa, 2013. "Financial and economic downturns in OECD countries," Bank of Finland Research Discussion Papers 35/2013, Bank of Finland.
    11. Neil Hart, 2003. "Marshall’s Dilemma: Equilibrium versus Evolution," Journal of Economic Issues, Taylor & Francis Journals, vol. 37(4), pages 1139-1160, December.
    12. George Bitros, 2008. "Why the structure of capital and the useful lives of its components matter: A test based on a model of Austrian descent," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 21(4), pages 301-328, December.
    13. Kim Kyung-Soo & Lee Jaewoo, 2001. "Asset Price And Current Account Dynamics," International Economic Journal, Taylor & Francis Journals, vol. 15(3), pages 85-108.
    14. Thomas M. Humphrey, 2004. "Alfred Marshall and the quantity theory of money," Working Paper 04-10, Federal Reserve Bank of Richmond.
    15. Alessandro Vercelli, 2010. "Economy and economics: the twin crises," Department of Economic Policy, Finance and Development (DEPFID) University of Siena 0410, Department of Economic Policy, Finance and Development (DEPFID), University of Siena.
    16. Annamaria Simonazzi & Fernando Vianello, 2005. "Price and Prejudice. The statics and dynamics of money-wage flexibility," Working Papers in Public Economics 86, Department of Economics and Law, Sapienza University of Roma.
    17. David Laidler & William B.P. Robson, 2004. "Two Percent Target: The Context, Theory, and Practice of Canadian Monetary Policy since 1991," C.D. Howe Institute Policy Studies, C.D. Howe Institute, number 20041, January.
    18. David Laidler, 2010. "Chicago Monetary Traditions," Chapters, in: Ross B. Emmett (ed.), The Elgar Companion to the Chicago School of Economics, chapter 6, Edward Elgar Publishing.
    19. Jonas Fischer & Lars Jonung & Martin Larch, 2007. "101 Proposals to reform the Stability and Growth Pact. Why so many? A Survey," European Economy - Economic Papers 2008 - 2015 267, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    20. Okina, Kunio & Shirakawa, Masaaki & Shiratsuka, Shigenori, 1999. "Financial Market Globalization: Present and Future," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 17(3), pages 1-40, December.

    More about this item

    Keywords

    Monetary theory; Employment; Labor productivity;
    All these keywords.

    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:fip:fedrwp:03-13. 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: Christian Pascasio (email available below). General contact details of provider: https://edirc.repec.org/data/frbrius.html .

    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.