The topicality of David Ricardo’s thought (on the bicentenary of the publication ‘On the Principles of Political Economy, and Taxation’)

Abstract

Motivation: On April 19, 2017 200 years had elapsed since the publication of his book, On the Principles of Political Economy, and Taxation. Using the method of abstraction, deduction, and modelling, the British stockbroker and economist — despite his lack of formal economic education — produced many original concepts that have earned him a lasting place in the history of economics. Aim: The objective of this study is to analyze the views of D. Ricardo, one of the most eminent representatives of the classical school, while the research problem is an attempt to assess their relevance. Results: It follows from a critical analysis of his views that the creators of the marginal revolution overthrew his theories of value and the theory of wages. The institutional, legal and social changes that have taken place in the capitalist economy in the past two centuries have made his theory of price-specie-flow and the theory of economic development obsolete. However, his theories of money, foreign trade and rent of land, and his methods of investigation have withstood the test of time. Controversial remains the law of market (‘Say’s law’) advocated by the classicists, and rejected by the followers of Keynesianism.