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Richard Cantillon

Picture of Richard Cantillon

Citizenship: Ireland

Background

Cantillon, Richard (Cantillon, Richard) (ok.1680-1734), an Irish economist. Born in County Kerry (Ireland). For information about the early years of his life are scarce. We know that he made a fortune by being a merchant in London, and then a banker in Paris. At the end of life he settled in London. Cantillon became known thanks to the work Essay on the general nature of the trade (Essai sur la nature du commerce en gnral), published in French in London in 1755. Oak. 1880 this work drew the attention of the English economist William Stanley Jevons, who called it "the cradle of political economy." In the first part of the book was given to the definition of wealth, which includes such items as land and labor. Cantillon argued that differences in pay are related to time spent, cost, degree of difficulty of mastering this type of work related to risk it, as well as required by the employee during its execution ability and the responsibility conferred on it. From these ideas subsequently increased wages theory of Adam Smith. Cantillon contrasted the real value that comes from the cost of production, - the market value of which depends on supply and demand. Money, whether paper or metal, it argued, are not the true measure of the wealth of the nation, the true source of wealth - land.

Earth brings three types of income. At first she reimburses the farmer, then a profit to someone who really owns it, and finally, the owner makes a profit. Cantillon argued that companies that do not belong to the agricultural sector is not able to offer the equivalent of a third type of income. The work Cantillon addresses issues such as barter, market prices, the circulation of money on the mass and velocity parameters, credit, interest rate and its base, raising or lowering interest rates, foreign trade, banking. His interpretation of certain articles expressly anticipates the idea of ??a much later time, such as the theory of Malthus. Cantillon first used the term "real or intrinsic value" (today it is called the "normal value") and showed the real value of bond market.

Cantillon died in London on May 14, 1734.