Of money

David Hume anticipated modern monetarism. First, Hume contributed to the quantity theory and interest rate theory. Hume has been credited with being the first to prove that, on an abstract level, there is no quantifiable amount of nominal money a country needs to thrive. He understood that there was a difference between nominal money and real money. Second, Hume has a theory of causation which fits in with the Chicago school "black box" approach. According to Hume, cause and effect are rela...