Abstract
An integral part of the classical theory of value and distribution, the classical theory of money emerged largely in response to the issue of the relationship between changes in the money supply and the price level. This issue was central to the Price Revolution of the 16th and 17th centuries, the Napoleonic war inflation and the industrial crises of the mid-19th century. It was not the existence of an empirical correlation that was in dispute, but the direction of causation. A solution would therefore require a theoretical approach as well as knowledge of the facts.
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Green, R. (2018). Money, Classical Theory of. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_650
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DOI: https://doi.org/10.1057/978-1-349-95189-5_650
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