Thomas Tooke and the Monetary Thought of Classical Economics 6 1 0 2 r e b m e t p e S 6 1 2 4 : 2 0 t a ] a w a t t O f Matthew Smith o y t i s r e v i n U [ y b d e d a o l n w o D Routledge Studies in the History of Economics Thomas Tooke and the Monetary Thought of Classical Economics 6 1 0 2 r This study provides a comprehensive account and reconsideration of the contri- e b bution to political economy of Thomas Tooke (1774–1858), English classical m e economist and influential monetary historian and theorist. It clarifies Tooke’s t p monetary thought and its legacy to modern economics. The study shows Tooke e S possessed a rich and extensive political economy, covering many aspects of eco- 6 1 nomic activity relevant to key policy issues. Tooke’s political economy is shown 2 to be a unified and coherent body of intellectual thought in the classical tradition 4 2: which, like most of his nineteenth-c entury contemporaries, was much influenced 0 t by Adam Smith’s economics. More particularly, Tooke’s monetary thought, a ] especially his novel banking school theory, is shown to be theoretically coherent a w from the standpoint of nineteenth-c entury classical economics. It is also shown ta that, besides contributing towards a better understanding of the behaviour of t O monetary systems in general, key elements of Tooke’s banking school theory of make an important contribution to explaining distribution, growth and price y inflation in modern economics. t i s In reconstructing Tooke’s political economy the study provides insights into r e v the conceptual properties of classical economics: into, for example, the approach i n to explaining market prices and their fluctuation, into explaining income distri- U [ bution, the doctrine of free trade, the meaning of ‘Say’s Law’ and explaining the y b fluctuation and trend movement in the general price level. The focus of the study d is on reconstructing Tooke’s monetary thought and, in doing so, to clarify the e d conceptual framework of monetary theory in classical economics. It is shown a o that Tooke’s banking school theory contributes not only towards the construc- l n w tion of an ‘endogenous money’ theory as an alternative to the quantity theory of o money approach, but that in the modern formulation of classical analysis it con- D tributes towards a well-g rounded conception of monetary forces, in particular, monetary policy, exerting a lasting influence on real economic variables such as income distribution, aggregate output and employment. This book will be of interest to students and researchers of the history of eco- nomic thought and those interested in the foundations of the development of monetary thought and policy. Matthew Smith is a Lecturer in Economics at the University of Sydney, Australia. 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