John Law, Monetarist or Keynesian?

출처: John Law, Monetarist or Keynesian?


John Law is typically remembered for the failure of the Mississippi system. In addition, he has been classified as a Keynesian. Fraser Hosford disputes this classification and finds evidence to suggest that Law might be more appropriately remembered as a Monetarist.

"He worked out the economics of his projects with a brilliance and, yes, a profundity, which places him in the front rank of monetary theorists of all times." (Joseph A. Schumpeter)

"a man of the rarest and most remarkable genius but one without virtue or religion." (Ferdinando Galiani)

"the eldest son of Satan" (Common French Appellation for Law)

Few people in the history of economic analysis have inspired such a diverse range of opinions. This shows how truly remarkable John Law was. Law is chiefly remembered for the collapse of the Mississippi system to the neglect of his monetary theory. However, the aim of this paper is to investigate the monetary writings of John Law and to relate the themes to modern schools of thought. Section I shall briefly introduce his main monetary writings. Section II shall show that Law's theory accords with classical economic theory in many areas. Law's Keynesian leanings and proposals shall be examined in Section III. In Section IV the consistency of Law's theory shall be shown. And finally in Section V Law's policies shall be criticised.