Currency, Credit and Commerce

Author: Marshall
Publisher:
Publish Date: 1997-02-01
Features: Marshall (1842—1924) was a renowned British economist who synthesized the vulgar economics of the 19th-century bourgeoisie, representing neoclassicism and founding the Cambridge School. The issues discussed in Money, Credit and Commerce can be said to fall entirely within the realm of macroeconomics. The book is divided into four parts. Part I primarily addresses monetary issues, covering the meaning, functions, and purchasing power of money, as well as the quantity theory of money and the bimetallic standard he advocated. He argued that the prevailing mechanical quantity theory of money was merely an identity with no real significance. As the founder of the cash-balance theory, he provided a brief exposition of this theory in Chapter 4 of this part. Later, figures like Robertson and Keynes formalized this theory and officially coined the term "cash-balance theory."
Part II discusses the credit system, banking theory, and exchange theory, which can be considered an introduction to the "International Trade" part.
Part III covers international trade and related issues, occupying the largest portion of the book. This part provides detailed analyses of transportation agencies, trade history, the general characteristics of international trade, and tariff issues. In the context of international trade, he supplemented and developed Ricardo and Mill's theories of comparative costs and international value, and further clarified his arguments in Appendix H.
Part IV analyzes the impact of technological development on employment, as well as the relationship between industrial and commercial fluctuations and market dynamics. The arguments presented in this book have had a significant influence on modern Western economics regarding money and international trade. Referencing this work helps us understand the theoretical origins of these discussions and better conduct critical reviews of them. Some content in the book, such as normative theories on international settlements and balance of payments, still holds practical relevance today and can be critically absorbed.