The Humean and Smithian traditions in monetary theory

David Glasner

This chapter discusses four areas of monetary theory on which the ideas of Smith and Hume have left their imprint: (1) the overissue of bank liabilities, (2) the price-specie-flow mechanism (PSFM), (3) the need for a lender of last resort in a competitive banking system, (4) real-bills doctrine and the scope of banking, and (5) rules versus discretion in monetary policy. In each of these cases, the difference between the Humean and Smithian traditions is attributable to their different interpretations of the quantity theory of money and the circumstances under which the quantity theory has empirical relevance.

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Year of publication:	2021
Authors:	Glasner, David
Published in:	Studies in the history of monetary theory : controversies and clarifications. - Cham : Palgrave Macmillan, ISBN 978-3-030-83425-8. - 2021, p. 155-194
Subject:	Price-specie-flow mechanism \| Lender of last resort \| Overissue \| Price rules \| Quantity rules \| Real-bills doctrine \| Rules versus discretion \| Geldtheorie \| Monetary theory \| Regelbindung versus Diskretion \| Lender of Last Resort \| Geldpolitik \| Monetary policy \| Ökonomische Ideengeschichte \| History of economic thought \| Zentralbank \| Central bank

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz im Buch ; Book section
Language:	English
Other identifiers:	10.1007/978-3-030-83426-5_7 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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