by Shackle
[Title Page and Preface]: G. L. S. Shackle introduces his essay on Richard Cantillon, honoring Professor Lucas Beltrán and identifying Cantillon as the founder of economics as a distinct discipline. He discusses his primary source, the 1933 Henry Higgs edition of the Essai, and notes the shared appreciation for Cantillon's work with Professor Robert Hébert. [1. Cantillon: The First Great Economist]: Shackle reviews the rediscovery of Richard Cantillon's 'Essai sur la Nature du Commerce en Général' by William Stanley Jevons and its subsequent publication by Henry Higgs. He argues against the view that Cantillon ignored ethics and politics, instead presenting Cantillon's vision of economic society as an organism driven by human nature and the interaction of different classes. [2. Incertitude: The Core of Cantillon's Theory]: Shackle highlights 'incertitude' (uncertainty) as the central theme of Cantillon's work, drawing parallels between Cantillon and Keynes. He critiques the 19th-century move toward exact science and general equilibrium for ignoring the human power to originate ideas under conditions of unknowledge. The section includes extensive quotes from Cantillon regarding how farmers and entrepreneurs operate under price uncertainty. [3. Price: Intrinsic Value and Market Altercations]: This section examines Cantillon's dual approach to price: 'valeur intrinseque' (intrinsic value based on land and labor) and market price determined by 'altercations' (supply and demand). Shackle argues that Cantillon anticipated subjective value theory and the 'Austrian' school by recognizing that market prices are driven by human 'fantaisie' and the comparative strengths of buyers and sellers. [4. Money: Circulation, Inflation, and Interest Rates]: Shackle details Cantillon's sophisticated monetary theory, noting his anticipation of Irving Fisher's quantity theory and the velocity of circulation. He explains Cantillon's analysis of how an influx of money (from mines or trade) leads to price increases and shifts in consumption. Crucially, Shackle links Cantillon's views on interest rates and money-holding to Keynesian concepts like liquidity preference and the speculative motive. [4. Currency Exchange and Banking]: Shackle explores Cantillon's practical expertise in banking and international trade, focusing on how bankers use speculation to manage currency exchanges. He notes Cantillon's early use of 'ceteris paribus' and his recognition of the role of time in economic problems. The essay concludes by asserting that Cantillon's work remains highly relevant for understanding the disorderly economic landscape of the 1980s.
G. L. S. Shackle introduces his essay on Richard Cantillon, honoring Professor Lucas Beltrán and identifying Cantillon as the founder of economics as a distinct discipline. He discusses his primary source, the 1933 Henry Higgs edition of the Essai, and notes the shared appreciation for Cantillon's work with Professor Robert Hébert.
Read full textShackle reviews the rediscovery of Richard Cantillon's 'Essai sur la Nature du Commerce en Général' by William Stanley Jevons and its subsequent publication by Henry Higgs. He argues against the view that Cantillon ignored ethics and politics, instead presenting Cantillon's vision of economic society as an organism driven by human nature and the interaction of different classes.
Read full textShackle highlights 'incertitude' (uncertainty) as the central theme of Cantillon's work, drawing parallels between Cantillon and Keynes. He critiques the 19th-century move toward exact science and general equilibrium for ignoring the human power to originate ideas under conditions of unknowledge. The section includes extensive quotes from Cantillon regarding how farmers and entrepreneurs operate under price uncertainty.
Read full textThis section examines Cantillon's dual approach to price: 'valeur intrinseque' (intrinsic value based on land and labor) and market price determined by 'altercations' (supply and demand). Shackle argues that Cantillon anticipated subjective value theory and the 'Austrian' school by recognizing that market prices are driven by human 'fantaisie' and the comparative strengths of buyers and sellers.
Read full textShackle details Cantillon's sophisticated monetary theory, noting his anticipation of Irving Fisher's quantity theory and the velocity of circulation. He explains Cantillon's analysis of how an influx of money (from mines or trade) leads to price increases and shifts in consumption. Crucially, Shackle links Cantillon's views on interest rates and money-holding to Keynesian concepts like liquidity preference and the speculative motive.
Read full textShackle explores Cantillon's practical expertise in banking and international trade, focusing on how bankers use speculation to manage currency exchanges. He notes Cantillon's early use of 'ceteris paribus' and his recognition of the role of time in economic problems. The essay concludes by asserting that Cantillon's work remains highly relevant for understanding the disorderly economic landscape of the 1980s.
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