 British monetary orthodoxy in the 1870s: A victory for the Currency PrincipleSylvie Diatkine and Jerome de Boyer The European Journal of the History of Economic Thought, 2008, vol. 15, issue 2, 181-209 Abstract: Approval of the quantity theory, of the Humean price-specie-flow mechanism (PSFM) and of lender of last resort analysis are characteristics of British monetary orthodoxy in the 1870s. But this does not mean that this orthodoxy achieved a synthesis between the Banking School and the Currency School. On the contrary, we show that it marks the victory of the Currency Principle that, in fact, did evolve after 1847, but did not rejoin Banking School ideas. The PSFM, which is essential to the Currency Principle, cannot be confused with the gold points mechanism described by Thornton and Tooke. The lender of last resort and money market theories developed by Bagehot are compatible with the dichotomy between currency and credit, a characteristic of the Currency Principle, and contrary to the thought of Thornton's and Tooke. Keywords: Currency School; Banking School; money and credit; Bagehot; lender of last resort; price-specie-flow mechanism; gold points mechanism (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:eujhet:v:15:y:2008:i:2:p:181-209 Ordering information: This journal article can be ordered from DOI: 10.1080/09672560802037557 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 |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.