Richard Cantillon in the context of "John Law (economist)"

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⭐ Core Definition: Richard Cantillon

Richard Cantillon (French: [kɑ̃tijɔ̃]; 1680s – May 1734) was an Irish-French economist and author of Essai Sur La Nature Du Commerce En Général (Essay on the Nature of Trade in General), a book considered by William Stanley Jevons to be the "cradle of political economy". Although little information exists on Cantillon's life, it is known that he became a successful banker and merchant at an early age. His success was largely derived from the political and business connections he made through his family and through an early employer, James Brydges. During the late 1710s and early 1720s, Cantillon speculated in, and later helped fund, John Law's Mississippi Company, from which he acquired great wealth. However, his success came at a cost to his debtors, who pursued him with lawsuits, criminal charges, and even murder plots until his death in 1734.

Essai remains Cantillon's only surviving contribution to economics. It was written around 1730 and circulated widely in manuscript form, but was not published until 1755. His work was translated into Spanish by Gaspar Melchor de Jovellanos, probably in the late 1770s, and considered essential reading for political economy. Despite having much influence on the early development of the physiocrat and classical schools of thought, Essai was largely forgotten until its rediscovery by Jevons in the late 19th century. Cantillon was influenced by his experiences as a banker, and especially by the speculative bubble of John Law's Mississippi Company. He was also heavily influenced by prior economists, especially William Petty.

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Richard Cantillon in the context of Circular flow of income

The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between economic agents. The flows of money and goods exchanged in a closed circuit correspond in value, but run in the opposite direction. The circular flow analysis is the basis of national accounts and hence of macroeconomics.

The idea of the circular flow was already present in the work of Richard Cantillon. François Quesnay developed and visualized this concept in the so-called Tableau économique. Important developments of Quesnay's tableau were Karl Marx's reproduction schemes in the second volume of Capital: Critique of Political Economy, and John Maynard Keynes' General Theory of Employment, Interest and Money. Richard Stone further developed the concept for the United Nations (UN) and the Organisation for Economic Co-operation and Development to the system, which is now used internationally.

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Richard Cantillon in the context of Vincent de Gournay

Jacques Claude Marie Vincent de Gournay (French: [də ɡuʁnɛ]; 28 May 1712, Saint-Malo, Province of Brittany – 27 June 1759, Cádiz), was a French economist, who became an intendant of commerce. Some historians of economics believe that he coined the phrase laissez faire, laissez passer. Evidence was to be found when the French State parted the East India Company privilege (monopoly) on the slave trade. He is also credited with coining the term "bureaucracy". Together with François Quesnay, whose disciple he was, he was a leader of the Physiocratic School.

Gournay's father was Claude Vincent, a merchant in Saint-Malo as well as a secretary to the king. Gournay didn't write much, but had a great influence on French economic thought through his conversations with many important theorists. He became instrumental in popularizing the work of Richard Cantillon in France.

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Richard Cantillon in the context of Essai Sur La Nature Du Commerce En Général

Essay on the Nature of Trade in General is a book about economics by Richard Cantillon written around 1730, and published in French in 1755. This book was considered by William Stanley Jevons to be the "cradle of political economy".

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