The foreword to a new and improved translation of Cantillon’s famous work.
An Essay on Economic Theory
An English translation of Richard Cantillon’s Essai sur la Nature du Commerce en Général. Translated by Chantal Saucier. Edited by Mark Thornton.
This audio book is made available through the generosity of Mr. Tyler Folger. It is narrated by Millian Quinteros.
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Mark Thornton and Chantal Saucier's Introduction to the new translation of Richard Cantillon's An Essay on Economic Theory.
Cantillon defines wealth as the consumption goods produced by land and labor.
All human societies are based on a system of property rights.
Cantillon explains that settlements are based on the requirements of production, especially the quantity of labor, and the extent of the specialization and division of labor.
Entrepreneurs establish markets in centrally located villages which provide the necessary conditions under which prices are established between supply and demand.
Property owners who live far from their lands experience a reduction in income proportional to the cost of transporting their production to market.
Wherever a government establishes its capital, the city will grow in size.
Skilled workers must be paid higher wages than unskilled workers.
Workers with higher quality skills, risky jobs, or jobs which require trustworthy employees will receive higher wages.
Prosperity cannot be created by subsidizing job training.
Intrinsic value can be measured by the quantity of land and laborers, taking into account the quality of land and labor.
Only money— a “most certain measure”—can be used for income measurements and comparisons.
Cantillon develops a circular-flow model of the economy that shows the distribution of farm production between property owners, farmers, and workers.
Cantillon introduces, for the first time, the theory of entrepreneurship.
Cantillon constructs a model of the isolated estate or closed economy where the choices of property owners determine outputs and prices, regardless if they manage the isolated estate or lease it to farmers.
Population is based on the tastes and choices of property owners.
The wealth of a nation depends on putting the labor force to work.
Gold and silver hold many advantages over other goods, such as durability, divisibility, transportability, and homogeneity
Market prices are determined by the bargaining between suppliers and demanders.
The circular flow model of the economy explains the implications of international trade.
A variety of factors affect the flow of money in circulation and this in turn affects the amount of money in circulation.
If factories were permitted in rural areas, basic commodities could be turned into goods, which could then be sent to the cities at a much lower transport cost.
Cantillon uses his price-specie flow mechanism to analyze some of the effects of inflation.
Changes in the quantity of money will change relative prices and have real effects on the economy, a phenomenon now known as the "Cantillon Effects".
Increases in the supply of money from a balance of trade eventually causes prices to rise.
Interest rates on loans are connected with an individual’s time preference.
The interest rate is a critical factor in the valuation of assets.
Bills of Exchange are a type of contract that can reduce the expense associated with transporting money.
Exchange rates are a function of the balance of trade and other factors.
The price of gold and silver and the ratio between them is determined by markets and is also based on their usefulness, cost of production, and transportation costs.
Raising and lowering the nominal value of money are methods by which the prince acquires resources by deceiving individuals about the value of money.
Fractional-reserve banking is a system where the banks lend some of their deposits and earn interest, but it comes with risks.
National Banks are of little utility and can be the source of economic chaos.
Inflation is a corrupt process and can result in bank runs and economic chaos.
