Richard Cantillon - Contributions To Economics

Contributions To Economics

Although there is evidence that Richard Cantillon wrote a wide variety of manuscripts, only his Essai Sur La Nature Du Commerce En Général (abbreviated Essai) survives. Written in 1730, it was published in French in 1755, and was translated into English by Henry Higgs in 1932. Although there is evidence which suggests that Essai had tremendous influence on the early development of economic science, Cantillon's treatise was largely neglected during the 19th century. In the late 19th century, it was "rediscovered" by William Stanley Jevons, who considered it the "cradle of political economy". Since then, Cantillon's Essai has received growing attention, thanks in large part to Henry Higgs, Joseph Schumpeter, Friedrich Hayek and Murray Rothbard, all of whom have written on the subject. Essai is considered the first complete treatise on economic theory, and Cantillon has been called the "father of enterprise economics".

One of the greatest influences on Cantillon's writing was English economist William Petty and his 1662 tract Treatise on Taxes. Although Petty provided much of the groundwork for Cantillon's Essai, Anthony Brewer argues that Petty's influence has been overstated. Apart from Petty, other possible influences on Cantillon include John Locke, Cicero, Livy, Pliny the Elder, Pliny the Younger, Charles Davenant, Edmond Halley, Isaac Newton, Sébastien Le Prestre de Vauban, and Jean Boisard. Cantillon's involvement in John Law's speculative bubble proved invaluable and likely heavily influenced his insight on the relationship between increases in the supply of money, price, and production.