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Posted: February 26th, 2022
History of Economic Thought
History of Economic Thought
Homework assignment #1
Answer the following two questions, worth 10 points each:
1.In Locke’s writings originates the first quantity theory of money, stating that the price level varies in the same direction as money supply. Is a change in the price level the only effect of a change in the supply of money in mercantilist thought? Refer to Cantillon’s Essay in the Nature of Commerce in General (Chapter VI Of an increase or decrease of hard money in a State, TWP pp.32-33) in your answer.
2. In England’s Treasure by Forraign Trade, (TWP, pp 26-27) Thomas Mun argues against the view that like Spain, England should prohibit the exportation of money. How does Mun make his point?
Extra credit question (5 points):
Go to https://www.fairtradeamerica.org/news-insights/wake-up-six-reasons-to-choose-fairtrade-coffee/
The Fairtrade America/coffee site states that this organization supports a fair deal for the farmers and workers who grow our food. What does this mean? Discuss whether this notion of fair trade is similar, and to what extent, with Thomas Aquinas’ s notion of “just prices.”
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