IDEAS home Printed from https://ideas.repec.org/a/taf/eujhet/v14y2007i1p25-53.html
   My bibliography  Save this article

Cause and effect in the gold points mechanism: A criticism of Ricardo's criticism of Thornton

Author

Listed:
  • Jerome de Boyer des Roches

Abstract

Noting that it is Thornton, not Ricardo, who is the originator of the classical analysis of the gold points mechanism, this paper shows that Ricardo rejected this mechanism. This is done by considering his criticism of the causal link between deficits, the exchange rate and the price of gold. The paper first emphasizes Thornton's analysis of the links between gold points, bank risk and the high price of bullion. It is then shown how far Ricardo is led astray in his criticism of Thornton and his explanation of the high price of bullion and of the exchange market.

Suggested Citation

  • Jerome de Boyer des Roches, 2007. "Cause and effect in the gold points mechanism: A criticism of Ricardo's criticism of Thornton," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 14(1), pages 25-53.
    • Handle: RePEc:taf:eujhet:v:14:y:2007:i:1:p:25-53
    DOI: 10.1080/09672560601168363
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09672560601168363
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09672560601168363?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Blake, William, 1810. "Observations on the Principles which Regulate the Course of Exchange; and on the Present Depreciated State of the Currency," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number blake1810.
    2. Tooke, Thomas, 1844. "An Inquiry into the Currency Principle," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number tooke1844.
    Full references (including those not matched with items on IDEAS)

    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. Rudiger Dornbusch & Jacob A. Frenkel, 1984. "The Gold Standard and the Bank of England in the Crisis of 1847," NBER Chapters, in: A Retrospective on the Classical Gold Standard, 1821-1931, pages 233-276, National Bureau of Economic Research, Inc.
    2. Sproul, Michael, 2018. "The Real Meaning of the real Bills Doctrine," MPRA Paper 87608, University Library of Munich, Germany.
    3. Chadha, Jagjit S. & Perlman, Morris, 2014. "Was the Gibson Paradox for real? A Wicksellian study of the relationship between interest rates and prices," Financial History Review, Cambridge University Press, vol. 21(2), pages 139-163, August.
    4. Cucciniello, Maria Chiara & Deleidi, Matteo & Levrero, Enrico Sergio, 2022. "The cost channel of monetary policy: The case of the United States in the period 1959–2018," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 409-433.
    5. Sylvie Diatkine, 2013. "Monetary policy on interest rates: a retrospective analysis since Thornton," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 20(5), pages 715-740, October.
    6. Christopher J. Niggle, 1991. "The Endogenous Money Supply Theory: An Institutionalist Appraisal," Journal of Economic Issues, Taylor & Francis Journals, vol. 25(1), pages 137-151, March.
    7. Sproul, Michael, 2018. "The Real Meaning of the Real Bills Doctrine (revised Nov., 2018)," MPRA Paper 90012, University Library of Munich, Germany, revised 13 Nov 2018.
    8. Jérôme de Boyer des Roches, 2013. "Bank liquidity risk: From John Law (1705) to Walter Bagehot (1873)," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 20(4), pages 547-571, August.
    9. Avner Cohen, 1998. "Cobden's stance on the currency and the political forces behind the approval of the Bank Charter Act of 1844," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 5(2), pages 250-275.
    10. Mario Seccareccia, 1988. "Systemic Viability and Credit Crunches: An Examination of Recent Canadian Cyclical Fluctuations," Journal of Economic Issues, Taylor & Francis Journals, vol. 22(1), pages 49-77, March.
    11. Germán D. Feldman, 2015. "A Sraffian interpretation of classical monetary controversies," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 22(4), pages 634-661, August.
    12. George Tawadros, 2002. "Purchasing power parity in the long-run: evidence from Australia's recent float," Applied Financial Economics, Taylor & Francis Journals, vol. 12(9), pages 625-631.
    13. Jerome de Boyer, 1998. "Endogenous money and shareholders' funds in the classical theory of banking," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 5(1), pages 60-84.
    14. Sylvie Diatkine & Jerome de Boyer, 2008. "British monetary orthodoxy in the 1870s: A victory for the Currency Principle," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 15(2), pages 181-209.

    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:taf:eujhet:v:14:y:2007:i:1:p:25-53. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REJH20 .

    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.