A Note on Modern Monetary Theory (MMT), Chartelism (19th Century MMT), and its stupidity.
Often ignored and vilified as the Dark Ages, the 14th, 15th, and 16th Centuries saw intellectual, scholastic, and academic development advance by leaps and bounds in many of Western Europe’s universities, notably in Paris, Genoa, Roma, Madrid, Venice, and many other centers of commerce, trade, and political power. During these years, the differences between the Dominican Friars and the Franciscan Friars, the Thomists (from St. Thomas Aquinas) and nominalists, led to the School of Salamanca in Spain.
As Spain acquired gold and silver from the Western Hemisphere, by virtue of the simple increase in specie, there was a 300% inflation of prices, starting in Madrid, but extending out as the money supply increased but goods and services did not. Cardinal Azilcueta, in the appendix to his Comentario resolutoio de usuras (1556) built on Cardinal Cajetan’s analysis of money as a commodity in and of itself.
“… all merchandise becomes dearer when it is in great demand and short supply, and that money, in so far as it may be sold, bartered or exchanged by some other form of contract, is merchandise, and therefore also becomes dearer when it is in great demand and short supply.”
“… other things being equal, in countries where there is a great scarcity of money all other saleable goods, and even the hands and labor of men, are given for less money than where it is abundant. Thus we see by experience that in France, where money is scarcer than in Spain, bread, wine, cloth and labor are worth much less. And even in Spain, in times when money was scarcer, saleable goods and labor were given for very much less than after the discovery of the Indies, which flooded the country with gold and silver. The reason for this is that money is worth more where and when it is scarce than where and when it is abundant.”
1556! How is it that the likes of the Federal Reserve Board of Governors, politicians of all stripes, businessmen and bankers, cannot understand what causes inflation? Could it be that only politicians and their toadies profit from inflation?
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A Note on Modern Monetary Theory (MMT), Chartelism (19th Century MMT), and its stupidity.
A Note on Modern Monetary Theory (MMT), Chartelism (19th Century MMT), and its stupidity.
Often ignored and vilified as the Dark Ages, the 14th, 15th, and 16th Centuries saw intellectual, scholastic, and academic development advance by leaps and bounds in many of Western Europe’s universities, notably in Paris, Genoa, Roma, Madrid, Venice, and many other centers of commerce, trade, and political power. During these years, the differences between the Dominican Friars and the Franciscan Friars, the Thomists (from St. Thomas Aquinas) and nominalists, led to the School of Salamanca in Spain.
As Spain acquired gold and silver from the Western Hemisphere, by virtue of the simple increase in specie, there was a 300% inflation of prices, starting in Madrid, but extending out as the money supply increased but goods and services did not. Cardinal Azilcueta, in the appendix to his Comentario resolutoio de usuras (1556) built on Cardinal Cajetan’s analysis of money as a commodity in and of itself.
“… all merchandise becomes dearer when it is in great demand and short supply, and that money, in so far as it may be sold, bartered or exchanged by some other form of contract, is merchandise, and therefore also becomes dearer when it is in great demand and short supply.”
“… other things being equal, in countries where there is a great scarcity of money all other saleable goods, and even the hands and labor of men, are given for less money than where it is abundant. Thus we see by experience that in France, where money is scarcer than in Spain, bread, wine, cloth and labor are worth much less. And even in Spain, in times when money was scarcer, saleable goods and labor were given for very much less than after the discovery of the Indies, which flooded the country with gold and silver. The reason for this is that money is worth more where and when it is scarce than where and when it is abundant.”
1556! How is it that the likes of the Federal Reserve Board of Governors, politicians of all stripes, businessmen and bankers, cannot understand what causes inflation? Could it be that only politicians and their toadies profit from inflation?
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