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

Jerome de Boyer des Roches

The European Journal of the History of Economic Thought, 2007, vol. 14, issue 1, 25-53

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.

Keywords: Bank risk; bullionist controversy; gold points; Horner; Ricardo; Thornton (search for similar items in EconPapers)
Date: 2007
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/09672560601168363 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:eujhet:v:14:y:2007:i:1:p:25-53

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/REJH20

DOI: 10.1080/09672560601168363

Access Statistics for this article

The European Journal of the History of Economic Thought is currently edited by José Luís Cardoso

More articles in The European Journal of the History of Economic Thought from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().