John Locke (1632–1704): The Wheels of Trade Are Turned by Silver

Jan Greitens ()
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Jan Greitens: Johann Wolfgang Goethe-Universität

Chapter Chapter 10 in Currency and Credit Money, 2026, pp 107-115 from Springer

Abstract: Abstract This chapter presents Locke’s metallist theory of money, emphasizing silver as a stable store of value and foundation of economic order. Locke defines money as a commodity whose value depends on scarcity and trade and rejects state manipulation of coinage as unjust. He develops an early Quantity Theory linking money supply to prices while also considering velocity of circulation. This chapter highlights Locke’s opposition to interest rate regulation and his analysis of international trade and specie flows. His role in the Great Recoinage underscores his influence on monetary policy. Locke emerges as a key advocate of “sound money,” prioritizing stability over monetary elasticity.

Date: 2026
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DOI: 10.1007/978-3-032-24113-9_10

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