chapter  4
Processes of Monetary Exchange
ByJOSÉ M. MENUDO
Pages 17

Introduction The eighteenth century is an outstanding period for understanding how economic science addresses the issue of exchange. During these years, Richard Cantillon presented a theory that expressed intrinsic value as an explicit alternative to the approach of relative value of John Locke.1 Also, Adam Smith decided to abandon the teachings of his teacher Francis Hutcheson when he developed the theory of prices in The Wealth of Nations (Skinner 1995). These are two examples amongst an important group of authors who made a great impact on developing the formalization of exchange. Literature has perceived these conflicts, mainly dealing with the issue of the abandonment of the utilitarian approach. However, other fundamental elements of preceding price theories were left behind by these changes, for example, money.