An Essay on Economic Theory

2.1. Barter

December 1, 2014
Prices of goods do not strictly follow the quantity theory of money.

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2.2. Market Prices

December 1, 2014
Market prices are determined by the bargaining between suppliers and demanders.

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2.3. The Circulation of Money

December 1, 2014
The circular flow model of the economy explains the implications of international trade.

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2.4. Further Reflection on the Rapidity or Slowness of the Circulation of Money in Exchange

December 1, 2014
A variety of factors affect the flow of money in circulation and this in turn affects the amount of money in circulation.

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2.5. The inequality of the circulation of hard money in a State

December 1, 2014
If factories were permitted in rural areas, basic commodities could be turned into goods, which could then be sent to the cities at a much lower transport cost.

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2.6. The Increase and Decrease of the Quantity of Money in a State

December 1, 2014
Cantillon uses his price-specie flow mechanism to analyze some of the effects of inflation.

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2.7. Continuation of the same subject

December 1, 2014
Changes in the quantity of money will change relative prices and have real effects on the economy, a phenomenon now known as the "Cantillon Effects".

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2.8. Further Reflections on the Increase and Decrease of Money in a State

December 1, 2014
Increases in the supply of money from a balance of trade eventually causes prices to rise.

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2.9. Interest on Money and its Causes

December 1, 2014
Interest rates on loans are connected with an individual’s time preference.

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