Abstract

This article examines several key aspects of the monetary economics in Richard Cantillon's Essai sur la Nature du Commerce en Général (1755 viewed from a modern monetarist perspective with special focus on monetary dynamics. After establishing the quantity theory framework of Cantillon's analysis, the article reviews the following aspects of his work: his theory of monetary disequilibrium; his analysis of the open economy; his treatment of the interest rate; his treatment of expectations and information; and his analysis of monetary induced business fluctuations and the use of monetary policy.

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