Bagehot’s Classical Money View: A Reconstruction

15 Pages Posted: 24 Jan 2024

See all articles by Perry Mehrling

Perry Mehrling

Columbia University, Graduate School of Arts and Sciences, Department of Economics

Date Written: January 4, 2024

Abstract

Bagehot is difficult for modern economists to read with understanding, for three reasons. He was a classical economist not neoclassical, his orientation was global not national, and, most importantly, his intellectual formation was as a practicing country banker not an academic. This paper adopts all three perspectives, and uses this frame to reinterpret his mature work, both Lombard Street and the unfinished Economic Studies, as the origin of the key currency tradition which continues as a minority view in modern economics.

Keywords: Bagehot Rule, key currency, money view, Lombard Street, Ricardo

JEL Classification: B12, B17, B31

Suggested Citation

Mehrling, Perry, Bagehot’s Classical Money View: A Reconstruction (January 4, 2024). Institute for New Economic Thinking Working Paper Series No. 216, Available at SSRN: https://ssrn.com/abstract=4704176

Perry Mehrling (Contact Author)

Columbia University, Graduate School of Arts and Sciences, Department of Economics ( email )

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New York, NY 10027
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