The Later Life of David Ricardo

Abstract

David Ricardo is considered to be the father of classical political economy theory, and one of the most influential economic thinkers of the pre-neoclassical era, ranking perhaps second only to Adam Smith in stature, but surpassing his predecessor in both rigor and intuition.¹ Ricardo was one of the first formal thinkers to advocate for the role of free trade and the significance of a well-managed money supply. In 1816, he had published a plan to return to the gold standard in an attempt to prevent England’s central bank from manipulating the currency and causing inflation. By backing paper currency with gold, the nation was able toretain the benefits of paper money but without the uncertainties. Five years later, and two years after he became a member of Parliament, England adopted his proposal.