Article thumbnail

Henry Thornton: seminal monetary theorist and father of the modern central bank

By Robert L. Hetzel

Abstract

Henry Thornton’s Paper Credit of Great Britain (1802) established once and for all the notion that central banks have the prime responsibility for controlling the money stock and the price level. This theme and the analytical framework underlying it reappeared in the famous Bullion Report (1810). There he and his coauthors contended that the central bank’s responsibility should be made explicit and that the mechanics for ensuring price level stability should be a matter of rules, not discretion.Economists ; Banks and banking, Central ; Economic history ; Great Britain

OAI identifier: oai:RePEc:fip:fedrer:y:1987:i:jul:p:3-16:n:v.73no.4

Suggested articles

Citations

  1. (1923). A Tract on Monetary ReJinvz
  2. (1981). Adam Smith and the Monetary Approach to the Balance of Payments.” Federal Reserve Bank of Richmond Economic R&m 67 (November/December
  3. (1945). AH&q of&n&g %xny. Chicago:
  4. (1939). An Engyiry into the Natunz andE&ts of the Paper Credit of f&at BAujn (1802) and two speeches (1811). Edited with an Introduction by
  5. (1984). Base Drift and the Longer Run Growth of Ml: Experience from a Decade of Monetary Targeting.” Federal Reserve Bank of Richmond,
  6. (1985). Cumulative Process Models from Thornton to Wicksell.” Federal Reserve Bank of Richmond,
  7. (1968). Henry Thornton.” In Inrtmatioti IGqvcLopedti of &e &&I Sciences, edited by
  8. (1969). House of Commons. Repwtfiom the &Lect catminee on the High Price of Bullion, 18 10. In 7%~ Paper Pound of 1797-1821, i% B.&on Repot, edited by Edwin Cannan.
  9. (1954). Htito~~ of Economic Analysis.
  10. (1987). Inside the Black Box.” Speech given to the National Association of Business Economists,
  11. Review of An Enquiry info t/re Natun and Effeccr~ of the Paper Credit of &at Bn’ran, by Henry Thornton.
  12. (1937). stuciies in the lZeoq of Intem&ma/ Trade.
  13. (1986). The Bullionist Controversy Revisited.”
  14. (1982). The Real Bills Doctrine.” Federal Reserve Bank of Richmond fionun&
  15. (1982). The Real-Bills Doctrine versus the Quantity Theory: A Reconsideration.”
  16. (1985). Thornton and the Analysis of the Inflation Premium.”
  17. (1967). Thornton’s Paper Credit” (1802).

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.