chapter  9
20 Pages

'Law and Galiani on Money and Monetary Systems', History of Political Economy, 22, Summer 1990, 321-40

John Law's theoretical views on money, mostly contained in his 1705 volume, have been controversial, supposedly because of their wavering nature. Schumpeter's authoritative account (1954,321-22) is revealing. After showing several arguments supporting Law's metallist stance, he classes him as a cartalist, primarily on the basis of Law's statement that "Money is not the value for which Goods are exchanged, but the Value by which they are exchanged" (1705, lOO; Schumpeter 1954, 322, emphasis his). Along with Schumpeter, Law has been characterized as a theoretical cartalist by other authors, including Rist (1951, 43-44) and Vickers (1960, 31, 75, 103, 118, esp. 138). The efficacious and meaningful conciseness of the crucial quotation notwithstanding, any attempt at a conclusive assessment should rest on an analysis of Law's whole work.