Vanity and the Daedalian Wings of Paper Money in Adam Smith

NEW VOICES ON ADAM SMITH, Eric Schlieser and Leonidas Montes, eds., London and New York: Routledge, 2006

20 Pages Posted: 17 Dec 2008

Date Written: December 15, 2006

Abstract

Adam Smith presents a detailed technical analysis of both private and public credit. Many contemporaries, including David Hume, recognized that public credit, and in part private credit, could be used to affect the economy, either for good or bad. Nevertheless, Smith does not seem to recognize the full potential of public credit as a policy instrument whether as a way to stimulate the economy, fine-tune it, or cause economic disasters. The reason for this shortcoming may be Smith's downplaying the desire for power and benevolence as motivational forces in human conduct, due to his emphasis on vanity instead.

Keywords: Adam Smith, paper money, vanity

JEL Classification: B12, E4

Suggested Citation

Paganelli, Maria Pia, Vanity and the Daedalian Wings of Paper Money in Adam Smith (December 15, 2006). NEW VOICES ON ADAM SMITH, Eric Schlieser and Leonidas Montes, eds., London and New York: Routledge, 2006, Available at SSRN: https://ssrn.com/abstract=1316579

Maria Pia Paganelli (Contact Author)

Trinity University ( email )

Dept. of Economics
One Trinity Place
San Antonio, TX 78212
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
69
Abstract Views
804
rank
364,497
PlumX Metrics