ABSTRACT

I propose to examine Ricardo’s banking theory, which has been rather neglected, although it is part of his monetary theory and policy. I would like to show that Ricardo’s banking theory is related to his interest-rate theory. This statement logically implies that he promotes an original view of the role of banks. This will allow me to reconsider the type of monetary policy proposed by Ricardo and the interpretations that have been made with respect to this policy (Sayers 1953; Arnon 1987, 2011; Davis 2005).