Monetary Theory And Policy From Hume And Smith ... ⟶

: Hume favored a 100% specie-reserve system for banks to prevent the artificial "paper-money" inflation that disrupts the natural flow of gold. 🏦 Adam Smith: Banking and the Real Bills Doctrine

In The Wealth of Nations (1776), Smith focused less on Hume’s international flow mechanism and more on how banking could catalyze economic growth. Monetary Theory and Policy from Hume and Smith to Wicksell Monetary Theory and Policy from Hume and Smith ...

: Hume argued that the price level of a country is directly proportional to its money supply. : Hume favored a 100% specie-reserve system for