Abstract
The early neoclassical economists were heirs to a rich legacy of classical writings: (1) The Ricardo-Torrens principle of comparative advantage; (2) John Stuart Mill’s theory of international values in terms of reciprocal demand and supply analysis, i.e. the ‘equilibrium’ theory of trade. Complementing these essentially barter relationships, there was (3) a theory of balance-of-payments adjustment mechanism, i.e. Hume’s price-specie flow mechanism and various statements of it by Ricardo, Thornton and Mill.1 These three analytical building blocks constitute the core of present-day orthodox international economics. As recently as 1974, the late Joan Robinson lamented the fact that ‘the development of the theory [of international trade] to this day runs in the narrow channel that was appropriate to Ricardo’s demonstration of the principle of comparative advantage.’.2KeywordsFree TradeComparative AdvantageTrade TheoryCommercial PolicyMonetary TheoryThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
