2.6 — Classical Macroeconomics & The Great Debate Over Say’s Law — Readings

monday, September 28, 2020

Required Readings:

• Ricardo readings, Malthus Principles of Political Economy, Say A Treatise on Political Economy in Reader
• finish Ch.5 “Ricardo and Malthus” in Landreth & Colander
• finish Chs.3-4 “Population, Diminishing Returns, and Rent” and “Ricardo’s System” in Blaug

Recommended Readings:

• Thornton An Enquiry into the Nature and Effects of Paper Credit of Great Britain in Reader
• Safner (2010), “The Duality of Say’s Law: A Restoration of J.B. Say’s Original Intentions”

The second paper is my term paper in my undergraduate History of Economic Thought Class (2010) on Say’s Law.

The following Wikipedia entries can also provide more background:

• Say’s Law
• Real Bills Doctrine
• Henry Thornton
• British Currency School
• Monetary-disequilibrium Theory

Questions to Help Your Reading

• Can there be a “general glut,” a surplus (excess supply) in all markets at the same time?
• What is Say’s Law?
• What does Malthus think of Say’s Law?
• What does Ricardo think of Say’s Law (and Malthus’ response)?