Download PDF by Gianni Vaggi: A Concise History of Economic Thought: From Mercantilism to

By Gianni Vaggi

ISBN-10: 0230505805

ISBN-13: 9780230505803

ISBN-10: 1403987394

ISBN-13: 9781403987396

ISBN-10: 1912032112

ISBN-13: 9781912032112

This booklet offers a quick heritage of financial concept from the seventeenth century to the current day. every one bankruptcy examines the main contributions of a big economist or staff of economists and contains feedback for extra studying. Economists lined comprise Keynes, Marshall, Petty and Jevons, and not more regular theorists equivalent to Galiani and Turgot.

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Example text

The power of the state depended on the amount of gold and silver in its coffers, because this international currency made it possible to build ships and to pay armies. ‘Bullion’ was the name used for the precious metals. An important feature of the mercantilists’ definition of wealth was that this is a stock concept: national wealth is measured by the amount of ‘international reserves’ at the disposal of the state. National wealth can be increased by bringing more gold and silver within the borders of the state, or by preventing them from flowing out.

Of these can raise necessary food and raiment for the whole 1000. if 200. more make as much commodities, as other Nations will give either their commodities or money for, and if 400. more be employed in the ornaments, pleasure, and magnificence of the whole; if there be 200. Governours, Divines, Lawyers, Physicians, Merchants and Retailers, making in all 900. the question is, since there is food enough for this supernumerary 100. also, how they should come by it? (Petty, 1662, p. 30) Petty, Division of Labour and Surplus 31 Ignoring Petty’s specific question for the moment, let us focus on his notion of social division of labour.

Land and labour as the ultimate determinant of value Petty’s work also shows that there is a need for a measure of the relative values of commodities, because of the different types of goods employed as inputs in the production of the various commodities. The heterogeneity of the inputs requires relative prices, and at the same time Petty needs to measure relative values in a way which bears some relation to the production conditions of commodities. Petty suggested an interesting way to solve this problem.

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A Concise History of Economic Thought: From Mercantilism to Monetarism by Gianni Vaggi

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