Contemporary economists deem virtually every piece of reasoning and argumentation in economics a model, forgetting that there may well be other conceptual tools at hand. This article demonstrates that David Hume used thought experiments to make some remarkable breakthroughs in monetary economics, and that this resolves a longstanding debate about an apparent inconsistency in Hume, between the neutrality and non-neutrality of money. In the actual world, money is never neutral for Hume; only in thought experiments does a sudden growth in (...) the money stock result in an identical and hence neutral increase in the price level. Thought experiments isolate tendencies but do not lend themselves to direct confirmation. Moreover, Hume’s dislike for the French model builders, Melon and Quesnay, captures an important juncture in mid eighteenth-century economic discourse regarding the warranted level of abstraction and of idealization. (shrink)

ABSTRACTIf war is an inevitable condition of human nature, as David Hume suggests, then what type of societies can best protect us from defeat and conquest? For David Hume, commerce decreases the relative cost of war and promotes technological military advances as well as martial spirit. Commerce therefore makes a country militarily stronger and better equipped to protect itself against attacks than any other kind of society. Hume does not assume commerce would yield a peaceful world nor that commercial societies (...) would be militarily weak, as many contemporary scholars have argued. On the contrary, for him, military might is a beneficial consequence of commerce. (shrink)

Monetary policy is a modern idea of which David Hume is generally considered a precursor. Moreover, thanks to Milton Friedman and Robert Lucas, he is often presented as one of the first and most illustrious endorser of monetarism. This paper argues against this view, and in agreement with Joseph Schumpeter, that Hume's contribution to economics, while not insignificant, cannot claim any real novelties. It offers an interpretation of Hume as a descendant of a pre-modern understanding of money rather than a (...) forerunner of modern monetary ideas, and as a scholar exposing common ideas of his time rather than a prophet of economic theories developed centuries later, and argues that there is little in Hume that resembles today's monetary policy prescriptions. (shrink)

This article provides information about Berne's financial situation at the time the Economic Society was founded. The canton was in an exceptionally fortunate position, having accumulated a sizeable cash reserve that was in part used for loans and investments on the London capital market. Throughout the century, the Bernese government followed a very cautious investment strategy. The main reason for purchasing overseas securities was that they helped the patricians to become independent from tax-paying subjects. Economic imperatives ruled out increases of (...) the cash reserve or further involvement in the overcrowded domestic capital market. However, by investing abroad Berne became increasingly dependent on the goodwill of its debtors, for which it was criticised by the Economic Patriots amongst others. (shrink)

Kant se razlikuje od evropskega mirovništva v ključnih točkah. Razlika izhaja iz tega, da vzrok mednarodnega miru postavlja v svobodno federacijo suverenih držav, se pravi, da problem obravnava strogo v okviru mednarodnega prava. Ta pravni okvir omejuje pričakovanja, da je mir mogoče doseči s trgovino ali prek vsesplošne republikanske ureditve. Po eni strani se Kant zaveda, da je razmah trgovanja olajšal sprožanje vojn in da trgovski narodi, ki kršijo jus gentium, pustošijo neevropski svet. Po drugi strani pa bi bil pacifistični (...) svet, zgrajen po načrtu klasičnega republikan-stva, militarizirana obča skupnost. (shrink)