Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE ( © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 05 May 2021

Abstract and Keywords

Adam Smith paid considerable attention to the problems of money, banking, and the price level in . Smith favoured private ownership and competition in banking, but he also favoured several legal restrictions, including usury laws, a lower limit on the size of bank notes, and elimination of ‘the option clause’ which permitted banks to delay payment of notes in hard money if they chose to do so. In monetary theory, Smith was a quantity theorist. He thought that real income was determined mainly by real forces, so that money in Smith’s schema mostly affected the price level. All of Smith’s judgements in the area of money and banking were based on his wide reading of monetary history, and his empirical investigations

Keywords: Adam Smith, banking, regulation, quantity theory of money

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.