Book review: Ricardo on Money and Finance. A Bicentenary Reappraisal
25/06/2014 § Leave a comment
Despite a flurry of statements about the need to rethink monetary theory in the light of the events that started in 2007 with the financial crisis, the mainstream academic program seems to have simply been to ‘lock the door and wait until this storm is over: business as usual’. Seven years since, the storm is not over and the door stays closed. The deepest rethinking the mainstream has granted itself, in fact, is the attempt to show how the
principles that support the autonomy of the central bank and the policy of inflation targeting, can provide—with some minor modifications—a satisfactory explanation for the current state of things. The aim of this book is stated by its editors to be a reappraisal of Ricardo’s monetary and financial thought, also in order ‘to offer some historical clues to understanding the current world-wide financial crisis’. There is no doubt that the reader will find in it interesting insights on both counts.