between the neutrality of money and self-balancing trade based on Henry Thornton and David Ricardo as two foundational … neutrality. In Thornton's Paper Credit money is not neutral ex ante: there can be temporary trade imbalances. But in the long …-run money is neutral ex post and international trade boils down to self-balancing barter. In Ricardo money is neutral both ex …

Noting that it is Thornton, not Ricardo, who is the originator of the classical analysis of the gold points mechanism … points, bank risk and the high price of bullion. It is then shown how far Ricardo is led astray in his criticism of Thornton …, this paper shows that Ricardo rejected this mechanism. This is done by considering his criticism of the causal link between …

Noting that it is Thornton, not Ricardo, who is the originator of the classical analysis of the gold points mechanism … points, bank risk and the high price of bullion. It is then shown how far Ricardo is led astray in his criticism of Thornton …, this paper shows that Ricardo rejected this mechanism. This is done by considering his criticism of the causal link between …

This paper revisits the theory of interest rates propounded by Henry Thornton (1760 - 1815). Particular attention is … paid to Thornton's examination of the inflationary effects of the gap between the Bank of England's discount rate and the … current rate of profit. The paper shows that Thornton is also concerned, unlike Wicksell, about the consequences of a gap …