Economics Dictionary of ArgumentsHome
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| Money: Money in economics is anything that is generally accepted as a medium of exchange. It is used to buy and sell goods and services, and to store value. See also Markets, Economy._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Walter Boyd on Money - Dictionary of Arguments
Rothbard II 164 Money/Walter Boyd/Rothbard: Following Smith, Walter Boyd(1) makes the distinction between money, or ‘ready money’, and other assets crystal-clear. >Money/Adam Smith. By the words ‘Means of Circulation’, ‘Circulating Medium’, and ‘Currency’, which are used almost as synonymous terms in this letter, I understand always ready money, whether consisting of Bank Notes or specie, in contradistinction to Bills of Exchange, Navy Bills, Exchequer Bills, or any other negotiable paper, which form no part of the circulating medium, as I have always understood that term. The latter is the Circulator, the former are merely objects of circulation. Walter BoydVsSmith, Adam: Not only that: Boyd proceeded to go beyond Smith and to be the first to clearly identify bank demand deposits as fully ‘ready money’ as bank notes. As he put it: ‘Credits in the Books of the Banks... may be considered as Bank Notes virtually, though not really in circulation...’. Much grief and error would have been spared economic thought as well as the development of money and banking if the currency school - the mid-nineteenth century successors to the bullionists - had heeded this lesson, and understood that demand deposits were equivalent to bank notes as a part of the supply of money. Money supply/Walter BoydVsSmith, Adam: On another crucial point, too, Boyd proved to be far superior to Adam Smith. Like Cantillon and Turgot, Boyd objected to the unfortunate doctrine, propounded by Hume and then by Smith, that an increase in the quantity of money results in an equiproportional increase in the ‘price level’. Considering the essence of the Hume model, of assuming a magically great Rothbard II 165 propordonate increase in the money supply and discussing the consequences, Boyd echoes Cantillon rather than Hume: if... this country had acquired, by supernatural means, and thrown into every channel of circulation, the same additional currency in gold and silver, within the same period, this influx, altogether disproportioned to the progress of the industry of the country; within that period, could not have failed to produce a very great rise in the price of every species of property, not all with equal rapidity, but each by different degrees of celerity, according to the frequency or rarity of its natural contact with money. >Money/Adam Smith, >Gold standard/Walter Boyd. Rothbard II 166 Boyd denounced inconvertible or ‘forced’ paper money as ‘that dangerous quack-medicine, which, far from restoring vigour, gives only temporary artificial health, while it secretly undermines the vital powers of the country that has recourse to it’. Boyd concluded that restoring the nation's currency ‘to its pristine purity’, would be ‘not only proper and practical, but indispensably necessary, in order to prevent the numberless calamities which the uncontrolled circulation of paper not convertible into specie, must infallibly produce’. 1. Walter Boyd. 1800. A Letter to the Rt. Hon. William Pitt published in 1801._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Boyd I Richard Boyd The Philosophy of Science Cambridge 1991 Boyd W I Walter Boyd Letter to the Right Honourable William Pitt on the Influence of the Stoppage of Issues in Specie at the Bank of England on the Prices of Provisions and other Commodities London 1801 Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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