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Ricardo's Theory of Money Matters

Author

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  • Maria Cristina Marcuzzo
  • Annalisa Rosselli

Abstract

[fre] Ricardo's Theory of Money Matters. . Dans cet exposé on analyse trois reproches adressés communément à la théorie monétaire de Ricardo : la monnaie-marchandise, la neutralité de la mon­naie et la conception d'équilibre à long terme. Le premier, que l'identification de la monnaie avec l'or empêche Ricardo de saisir le sens du papier-monnaie et, par conséquent de comprendre pleinement ses propriétés. Le deuxième, que Ricardo est le champion de la théorie quantitative de la monnaie et qu'il refuse de voir les effets réels des variations dans les variables nominales. Le troisième, que Ricardo porte une attention exclusive aux phénomènes permanents au détriment de l'analyse des phénomènes à court terme. Notre analyse affronte ces reproches et propose une interprétation alternative de la théorie monétaire de Ricardo. [eng] Ricardo's theory of money matters. . In this paper three common charges against Ricardo's monetary theory are evaluated : the commodity-money fallacy, the neutrality of money and the long-period view. According to the first, Ricardo's identification of money with gold prevented him from coming to grasp with paper-money and therefore fully understanding the properties of money. According to the second, Ricardo is the champion of the quantity theory of money and failed to see the real effects of variations in nominal variables. According to the third, Ricardo gave exclusive attention to permanent phenomena to the detriment of analysis of short-period disturbances. The paper challenges these views and provides an alternative interpretation of Ricardo's monetary theory.

Suggested Citation

  • Maria Cristina Marcuzzo & Annalisa Rosselli, 1994. "Ricardo's Theory of Money Matters," Revue Économique, Programme National Persée, vol. 45(5), pages 1251-1268.
    • Handle: RePEc:prs:reveco:reco_0035-2764_1994_num_45_5_409606
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    1. Will E. Mason, 1977. "Winners and Losers: Some Paradoxes in Monetary History Resolved and Some Lessons Unlearned," History of Political Economy, Duke University Press, vol. 9(4), pages 476-489, Winter.
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    Cited by:

    1. Costabile, Lilia, 2022. "Commodity money, natural values, and central banking in Ricardo," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 104-111.
    2. Ghislain Deleplace, 2019. "“Orthodox versus Unorthodox Views on Ricardo’s Theory of Money”," Post-Print hal-04429068, HAL.
    3. Ghislain Deleplace, 2020. "Orthodox versus Unorthodox Views on Ricardo’s Theory of Money," Post-Print hal-04253395, HAL.
    4. Talknice Saungweme & Nicholas M. Odhiambo, 2021. "Inflation and Economic Growth in Kenya: An Empirical Examination," Advances in Decision Sciences, Asia University, Taiwan, vol. 25(3), pages 1-25, September.
    5. Ghislain Deleplace, 2022. "“Storm in a Teacup? The Impact of War on the English Monetary System and Thought (1797-1821)”," Post-Print hal-04429477, HAL.
    6. David Andrews, 2000. "Keynes, Ricardo and the classical theory of interest," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 7(2), pages 228-244.
    7. T. Saungweme & N.M. Odhiambo, 2021. "Inflation and Economic Growth in Kenya: An Empirical Examination," Working Papers AESRI-2021-13, African Economic and Social Research Institute (AESRI), revised Oct 2021.
    8. Talknice Saungweme & Nicholas M. Odhiambo, 2021. "Inflation and Economic Growth in Kenya: An Empirical Examination," Advances in Decision Sciences, Asia University, Taiwan, vol. 25(3), pages 1-25, September.
    9. Annalisa Rosselli, 1999. "The Origin of the Political Economy of Money," Review of Political Economy, Taylor & Francis Journals, vol. 11(4), pages 443-454.
    10. Talknice Saungweme & Nicholas M. Odhiambo, "undated". "Inflation And Economic Growth In Kenya: An Empirical Examination," Working Papers AESRI04, African Economic and Social Research Institute (AESRI).
    11. Ciccone, Michele, 2022. "Some notes on Ricardo's analysis of the convergence process of the market rate of interest to the natural rate," MPRA Paper 112887, University Library of Munich, Germany.
    12. Ghislain Deleplace, 2019. "“Orthodox versus Unorthodox Views on Ricardo’s Theory of Money”," Post-Print hal-04429116, HAL.

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    More about this item

    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General

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