David hume (1711-1776) is arguably the most esteemed philosopher to have written in the english language during his lifetime, however, hume was as well if not better known for his contributions to political economy, particularly for the essays published as the political discourses (1752) hume left his mark on the. David hume is known for his philosophical writings, but he also wrote on politics, history, and economics this ebook contains 7 economic essays which were first published in hume's political discourses (1752) and republished in essays and treatises on several subjects, volume 1 (1758, 1777) one essay has been. Hume concluded his penetrating analysis with an ultra-hard-money policy proposal — 100 percent specie-reserve banking david hume and the theory of money hume's contribution to economics is fragmentary, and consists of approximately 100 pages of essays in his political discourses (1752. It is in these essays that hume presented a devastating criticism of mercantilist thinking on trade and commerce, while at the same time david hume constructed what has become known as the “specie-flow” theory of the movement of money and goods between nations to assure equilibrium among. The same jealous fear, with regard to money, has also prevailed among several nations and it required both reason and experience to convince any people, that these prohibitions serve to no other purpose than to raise the exchange against them, and produce a still greater exportation42 iiv4 these errors, one may. Of the balance of trade is an economic text on monetary theory, written by david hume and published in 1752 in this book, hume examines various mistakes committed by nations regarding trade, and suggests better alternatives the thought experiments hume uses in the book are sometimes argued by modern.
His own words, but with two paragraphs of quotation, one from hume's “of interest” (1752b) and then one from hume's “of money” (1752a) in his nobel lecture, robert lucas (1996, p 661) referred to “the beginnings of modern monetary theory, in david hume's marvelous essays of 1752, of money and of interest. Increase the total amount of goods possessed by human beings, or their welfare 48 perlman disagrees with mises' assessment of hume's position one of the most controversial passages in david hume's economic essays is the one in which he discusses the transitory effects of a change in the quantity of moneyit was. David hume on monetary policy: a retrospective approach journal of scottish monetary policy is a modern idea of which david hume is generally considered in any payment' (hume  1985: 284, emphasis added) in his essays, hume usually maintains this distinction between gold and silver money and paper. David hume esq edinburgh printed by r fleming for a kincaid and a donaldson mdcclii nb the copytext for the following essays is the 1777 edition of i thought this introduction necessary before the following discourses on commerce, money, interest, balance of trade, &c where, perhaps, there will occur.
Thus the notion — though not the term — goes back to early statements of the quantity theory, such as the classic one by david hume in his 1752 essays 'of money', 'of interest' and 'of the balance of trade' at that time the notion also served as one of the arguments against the mercantilist doctrine that the wealth of a. David hume's views on economics are expressed in his essays, moral for hume, money is not one of the wheels of trade, but is the oil that allows the wheels of trade to roll more easily” the actual quantity of money is unimportant, since prices are always proportional to the in david hume's economic essays is the. Labour and commodities and the farther flowing in of money is stopped by our fulness and repletion” (hume, 1752b) introduction the hume's law is one of the oldest theories of the balance of payment adjustment mechanism author – david hume (1711–1776) – published his theory in 1752 in the book essay, moral.
Keywords: david hume, irving fisher, quantity theory of money, long-run neutrality, short-run non-neutrality jel classifications: b31 history of economic the standard of history of economic thought in theory textbooks, they regrettably proceed to state that 'hume published his essay in 1758' (hume 1758. That the classicals-ie, those predominantly british economists who wrote during the period 1750-1870 dating roughly from the publication of david hume's essays to the emergence of the marginalist revolu- tion in the writings of william stanley jevons, carl menger, and leon walras-denied that money-stock changes had. David hume's monetary theory has been controversial since its for- mulation lately, the focus has been on hume's alleged misapplication of the quantity theory of money while he appears to subscribe to a simple quantity theory with money neutrality, in a famously contested passage in the essay of money, he violates the.