David Hume on Canadian paper money: an overlooked contribution.

Journal of Money, Credit & Banking | August 1, 2005| | Copyright

THE SCOTTISH ENLIGHTENMENT philosopher and historian David Hume is justly renowned as a monetary economist for his specie-flow mechanism of balance of payments adjustment and his analysis of the short-run non-neutrality of money in his Political Discourses in 1752 (reprinted in Rotwein, 1955). The extensive modern literature on Hume as an economist (see, Dimand, forthcoming for references) has concentrated almost exclusively on those essays, and has noted that Hume, previously a vehement opponent of all paper money, inserted comments on the potentially favourable effects of ...

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