Journal Article

Henry Thornton: seminal monetary theorist and father of the modern central bank


Abstract: Henry Thorntons Paper Credit of Great Britain (1802) established once and for all the notion that central banks have the prime responsibility for controlling the money stock and the price level. This theme and the analytical framework underlying it reappeared in the famous Bullion Report (1810). There he and his coauthors contended that the central banks responsibility should be made explicit and that the mechanics for ensuring price level stability should be a matter of rules, not discretion.

Keywords: Economists; Banks and banking, Central; Economic history; Great Britain;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Economic Review

Publication Date: 1987

Volume: 73

Issue: Jul

Pages: 3-16