The foundations of the monetary system which governed the world economies until the First World War were laid at the beginning of the 19th century. While the City was developing as the centre of the network of international payments, Ricardo was embarking on the task of understanding the main features of that world. With characteristic thoroughness and rigour he laid the basis of the international monetary system which became known as the Gold Standard. Its foundations rested on the belief that gold was the best monetary ...
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The foundations of the monetary system which governed the world economies until the First World War were laid at the beginning of the 19th century. While the City was developing as the centre of the network of international payments, Ricardo was embarking on the task of understanding the main features of that world. With characteristic thoroughness and rigour he laid the basis of the international monetary system which became known as the Gold Standard. Its foundations rested on the belief that gold was the best monetary standard and on trust in the market rather than in the monetary authority to provide the guidance and the adjusting mechanism of the international monetary order. This book combines historical investigation and theoretical analysis to present the Ricardian approach and provides an updated assessment of these arguments in the light of modern experience.
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