John Wheatley’s Contribution to Monetary Thought - From Strict Monetary Neutrality to Real Effects of Monetary Policy and the Role of the Payment System
This paper reassesses John Wheatley’s contribution to the development of monetary doctrine at the beginning of the nineteenth century. His contribution is still underrated, despite an advanced methodological approach and his radical refinement of bullionist arguments. His contributions to theoretical monetary policy and international monetary economics deserve more attention as his often harsh criticism of fellow bullionists demonstrates his uncompromising adherence to methodological principles, his independence and his originality. However, he was willing to reassess his own conclusions in the light of contradicting evidence. Based on his “An Essay on the Theory of Money and Principles of Commerce” (1807) historians of economic thought portray him as a proponent of strict monetary neutrality. But his less popular pamphlets of 1816 and 1819 elucidate a more differentiated position. There, he highlights the role of the payment system in the propagation of monetary shocks to the real economy. In the light of the crises of 1814-16 he emphasises the pronounced real effects a reduction of the quantity of money can have due to a disruption of the payment system.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpmh:0405001. 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: (EconWPA)
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.