Cantillon’s monetary economics and the modern controversy between orthodox and heterodox economists

摘要

The paper discusses the fundamental aspects of Richard Cantillon’s monetary ideas throughout the 18th century. However remote in time, the author’s analytical framework offers important and useful reflections concerning contemporary monetary phenomena. One of the most significant features in his approach is the theoretical guideline which states that the point of injection of money into the economy should be taken into consideration in order to adequately comprehend the connection between the monetary and real sides of the economy. Therefore, Cantillon already provided a critical appraisal of the incipient quantitative postulate, which stated a proportionate relationship between money and prices. As a consequence of his analysis, it is clear that the increase in the quantity of money generates lasting real effects on the economy.