The Monetary Thought of Thomas Tooke

Abstract

The leading theorist of the Banking School and author of the monumental six volume History of Prices(1838-1857) and the brilliant pamphlet, An Inquiry into the Currency Principle (1844), Thomas Tooke (1774-1858) is one of the most prominent figures in nineteenth century monetary thought. This paper aims to expound the central features of Tooke's monetary analysis. The paper first examines his early pre-banking school views on monetary questions which led him to reject the classical quantity theory. It then examines Tooke's banking school principles on the relation between money, interest and the price level. By way of conclusion, the logical consistency of Tooke's monetary thought within the theoretical framework of classical economics is examined critically in order to evaluate its relevance to contemporary monetary economics.