From Ricardo to Sraffa: Gold as Monetary Standard in a Classical Theory of Money

Carlo Benetti () and Jean Cartelier ()
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Carlo Benetti: Université Paris-Nanterre, EconomiX
Jean Cartelier: Université Paris-Nanterre, EconomiX

Chapter Chapter 12 in New Perspectives on Political Economy and Its History, 2020, pp 241-257 from Palgrave Macmillan

Abstract: Abstract This chapter inquires into what could or should be a Classical theory of money and prices sixty years after Sraffa’s Production of Commodities by Means of Commodities’ publication. It takes as granted three basic propositions: (i) Sraffa’s system of prices is relevant for determining Classical natural prices; (ii) a monetary standard (gold) is central to a Classical theory of money; (iii) Cantillon-Smith rule is pivotal to Classical market prices determination. The authors contend that: (i) the coexistence of a natural price and a legal price of gold is a necessary condition for a Classical theory of money; (ii) the market price of gold cannot be different from its legal price (no arbitrage); and (iii) the regulation of the quantity of money remains an open question.

Keywords: Money; Arbitrage; Ricardo; Money standard; Gold (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pshchp:978-3-030-42925-6_12

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DOI: 10.1007/978-3-030-42925-6_12

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