Ricardo and Malthus were contemporaries and worked on developing the ideas presented by Adam Smith.
David Ricardo (1772-1823) began working with 14 years in the London Stock Exchange. He specialized in public equity, and 40 years and had a respectable fortune. After reading Adam Smith began publishing his ideas on the subject of money.
In 1817 appeared his Principles of Political Economy and Taxation ". This book has stood as the chief economic analyst of his time. When he became a Member of Parliament was regarded as Professor in economics from the House of Commons.
Ricardo said work crucial common denominator in all production lines and supported the free trade of agricultural products, developing "theory of comparative advantage": comparing the amounts of labor necessary to obtain the goods in different countries. Each country could specialize in the production of that commodity in which it had a comparative advantage.
for England was clear that improved its national interests when imports were concentrated in agricultural products, offering in return the British manufactures. Ricardo advocated the abolition of the Corn Laws (Protection of English landowners and their production of wheat)
This international trade required a sound financial system. According to Ricardo, the national monetary system should be regulated to prevent disruption of the international division of labor.
Issuance (manufacturing) of notes in a country threatened its commercial position. More money with the same assets was an increase in prices ... then exports would be less competitive and imports more attractive.
Ricardo opted for an alternative "puffs" and held that the domestic money supply should comply strictly with the country's gold reserves.
in an embryonic form, David Ricardo summarized the theory of the gold standard.
the end of his life, despite having criticized the landowners, land Ricardo spent most of his fortune.
Zabaleta Mark
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