IDEAS home Printed from https://ideas.repec.org/p/uwa/wpaper/08-18.html
   My bibliography  Save this paper

Pareto’s 1920-21 Manuscript on Money and the Real Economy

Author

Listed:
  • Michael McLure

    (UWA Business School, The University of Western Australia)

Abstract

In the 1896-97 Cours d’Économie Politique and the 1906 Manuale di Economia Politica, Vilfredo Pareto made no use of the ‘Fisherian’ type quantity theory equations of exchange that Walras developed in the 1874 edition of the Éléments d’Économie Politique Pure and completely ignored Walras’ more mature ‘Cambridge’ type encaisse desirée (demand for real cash balances) approach that Walras integrated within general equilibrium in the 1900 edition of his Éléments. This paper critically examines a fragmented manuscript that Pareto wrote in 1920-21, and which was first published in 2005, for the purpose of clarifying the reasons why he did not follow Walras in integrating monetary theory within general equilibrium. In many respects, the manuscript follows Walras more closely than Pareto’s major published works, but the substantive point is that Pareto was unable to introduce money within general equilibrium theory along the lines envisaged by Walras because he explicitly recognized the interdependence between money and the real economy and abandoned the quantity theory of money.

Suggested Citation

  • Michael McLure, 2008. "Pareto’s 1920-21 Manuscript on Money and the Real Economy," Economics Discussion / Working Papers 08-18, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:08-18
    as

    Download full text from publisher

    File URL: https://www.business.uwa.edu.au/school/disciplines/economics/?a=94277
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michael McLure, 2007. "The Paretian School and Italian Fiscal Sociology," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59626-9, December.
    2. Pascal Bridel, 1997. "Money and General Equilibrium Theory," Books, Edward Elgar Publishing, number 1303.
    3. Ronald Bird & Vincent J. Tarascio, 1992. "Paretian Rent Theory Versus Pareto's Rent Theory: A Clarification and Correction," History of Political Economy, Duke University Press, vol. 24(4), pages 909-923, Winter.
    4. Arthur W. Marget, 1935. "The Monetary Aspects of the Walrasian System," Journal of Political Economy, University of Chicago Press, vol. 43(2), pages 145-145.
    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. Andrés Álvarez & Vincent Bignon, 2013. "L. Walras and C. Menger: two ways on the path of modern monetary theory," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 20(1), pages 89-124, February.
    2. Schöbel Enrico, 2018. "Finanzsoziologie und Steuerpsychologie: Wiederentdeckungen einer sozio-ökonomischen Finanzwissenschaft: Anmerkungen zu den Büchern von Rudolf Goldscheid, Max Haller (Hg.), Stephan Mühlbacher und Maxim," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 69(1), pages 442-452, July.
    3. C�cile Dangel-Hagnauer, 2013. "Schumpeter's institution of money: Slipping off the border of economic theory and landing in economic sociology," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 20(6), pages 1000-1031, December.
    4. Silvestri, Paolo, 2015. "Disputed (Disciplinary) Boundaries. Philosophy, Economics, Value Judgments," CESMEP Working Papers 201504, University of Turin.
    5. Andrés Alvarez, 2010. "Comparative Views on L. Walras and A. Cournot on The Regulation of Paper Money: Rules VS. Discretion at The End of The XIXth Century," Documentos de Trabajo, Escuela de Economía 6703, Universidad Nacional de Colombia, FCE, CID.
    6. Richard Wagner, 2012. "Rationality, political economy, and fiscal responsibility: wrestling with tragedy on the fiscal commons," Constitutional Political Economy, Springer, vol. 23(3), pages 261-277, September.
    7. Pascal Bridel & Elisabeth Huck, 2002. "Walras's tatonnement : a reply to Rebeyrol and Costa," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 9(4), pages 559-567.
    8. Mario Pomini, 2020. "Interpreting the path of Italian economic thought: The contribution of Eraldo Fossati," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 9(1), pages 21-39.
    9. Freeman, Alan & Kliman, Andrew, 1998. "Simultaneous and Temporal Valuation Contrasted," MPRA Paper 52805, University Library of Munich, Germany, revised 23 Sep 1998.
    10. William Luther, 2016. "Mises and the moderns on the inessentiality of money in equilibrium," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(1), pages 1-13, March.
    11. Giovanni Michelagnoli, 2021. "The modern Italian debate on the Walrasian theory of capitalization (1960-1971)," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 10(1), pages 131-155.
    12. Meg Patrick & Richard Wagner, 2015. "From mixed economy to entangled political economy: a Paretian social-theoretic orientation," Public Choice, Springer, vol. 164(1), pages 103-116, July.
    13. Paolo Silvestri, 2016. "Disputed (Disciplinary) Boundaries: Philosophy, Economics and Value Judgments," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 24(3), pages 187-221.
    14. Michael McLure, 2007. "Pareto's Chronicles: Liberty and the Left," Economics Discussion / Working Papers 07-11, The University of Western Australia, Department of Economics.
    15. Akhabbar, Amanar, 2011. "Tableaux économiques et analyse des business cycles chez Marschak, Frisch et Leontief [Tableau Economique and business cycle analysis in the works of Marschak, Frisch and Leontief]," MPRA Paper 34556, University Library of Munich, Germany.
    16. Plassard, Romain, 2017. "Disequilibrium as the origin, originality, and challenges of Clower's microfoundations of monetary theory," MPRA Paper 78917, University Library of Munich, Germany.
    17. Michael McLure, 2017. "Ricardian Equivalence, the Italian Fiscal Tradition and Western Australia’s Government Net Debt," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 24(1), pages 5-20.
    18. Giuseppe Eusepi & Richard E. Wagner, 2011. "States as Ecologies of Political Enterprises," Review of Political Economy, Taylor & Francis Journals, vol. 23(4), pages 573-585, October.
    19. Richard E. Wagner, 2012. "Deficits, Debt, and Democracy," Books, Edward Elgar Publishing, number 14477.
    20. Pascal Bridel, 2002. "Patinkin, Walras and the 'money-in-the-utility-function' tradition," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 9(2), pages 268-292.

    More about this item

    Statistics

    Access and download statistics

    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:uwa:wpaper:08-18. 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: Sam Tang (email available below). General contact details of provider: https://edirc.repec.org/data/deuwaau.html .

    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.