This chapter discusses david hume's background and contributions to macroeconomics hume's book, political discourses, consists mainly of essays— seven out of the twelve—on economic issues hume had strong views on the neutrality of money, particularly in the long term he challenged the view that increases in the. Quantity theory of money, economic theory relating changes in the price levels to changes in the quantity of money in its developed form, it constitutes an analysis of the factors underlying inflation and deflation as developed by the english philosopher john locke in the 17th century, the scottish philosopher david hume in. David hume is the first great thinker to identify language, law and money as ' spontaneous' institutions of social organisation hume was on to something quite profound, which remains under-appreciated language, law and money have very similar economic properties specifically, the resilience and. Includes political discourses (1752), my own life, by david hume, and a letter by adam smith part ii, essay iii of money iiiii1 money is not, properly speaking, one of the subjects of commerce but only the instrument which men have agreed upon to facilitate the exchange of one commodity for another it is none. 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.
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. Today, we will look at a famous essay by david hume, “on the balance of trade” it was written in 1752 hume was an but, the legacy of hume lives even today, as most economists actually still believe that international trade has something to do with money (mostly, it doesn't) for example, the stunning. This analysis and more general summary of “essays: moral, political, and literary ” by hume will attempt to define david hume's ideas both within his own time in his essay that follows his discussion “of commerce” entitled, “of money” he suggests that a country's wealth was not how much money it had.
Instead, it is better to look at some of the central economic ideas espoused by hume, and ascertain whether they display monetarist aspects or indeed shaped future monetarist views thus, in this essay i will first look at money neutrality and hume's formulation of the theory i will then analyse how hume believed the interest. 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. Tion of his essay of money smith's analysis of economic growth and society owes a great deal to his having read hume's massive the history of england hume wrote the four-volume work between 1754 and 1762 while librarian at the advocates' library in edinburgh after failing for the second time to secure a university. I was of a good family, both by father and mother: my father's family is a branch of the earl of home's, or hume's and my ancestors had been proprietors of the estate in 1742, i printed at edinburgh the first part of my essays: the work was favourably received, and soon made me entirely forget my former disappointment.