Psychology 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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David Ricardo on Money - Dictionary of Arguments
Rothbard II 196 Money/currency/Ricardo/Rothbard: The value of the circulating medium of every country bears some proportion to the value of the commodities which it circulates... No increase or decrease ofits quantity, whether consisting of gold, silver, of paper-money, can increase or decrease its value above or below this proportion. If the mines cease to supply the annual consumption of the precious metals, money will become more valuable, and a smaller quantity will be employed as a circulating medium. The diminution in the quantity will be proportioned to the increase of its value.(1) The value of inconvertible paper money, declared Ricardo, becomes determined in the same way. Hence, under any restriction of specie payment, „any excess of [Bank]... notes would depreciate the value of the circulating medium in proportion to the excess. If twenty millions had been the circulation of England before the restriction... and if the bank were successively to increase it to fifty, or a hundred millions, the increased quantity would be all absorbed in the circulation of England, but would be in all cases, depreciated to the value of the twenty millions.“(1) Rothbard: Under inconvertible currency, furthermore, strict proportionality then gets carried over to the determination of exchange rates. Like Wheatley, Ricardo concluded that only monetary factors ever determine the exchange rate and hence that the depreciation of the exchange rate must precisely measure the extent of monetary inflation and of the over-issue ofpaper money. In the same way, and to the same precise proportion, the rise in the price of bullion, and the rise in prices of commodities, will also reflect the selfsame over-issue and depreciation. >John Wheatley. 1. David Ricardo 1810. The High Price of Bullion. A Proof oft he Depreciation of Banknotes._____________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. |
EconRic I David Ricardo On the principles of political economy and taxation Indianapolis 2004 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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