Answer to Question #143430 in Economics for Neba

Question

What is the scope of economics to reicardo? List the Ricardian models and explain it.

Answer 1

Ricardo's economics are economic theories. David Ricardo, English political economist, born in 1772, made his fortune from a stock and credit broker. At the age of 27, he read Adam Smith's A Study of the Nature and Causes of the Wealth of Nations and was inspired by theories of economics.

His main economic ideas are contained in the book "On the principles of political economy and taxation" (1817). This set is from a series of theories that later became the Theoretical Foundations of both Marx Das Kapital and Marshallian Economics, including the theory of economic rent, the labor theory of value and above all the theory of comparative advantage.

Ricardo wrote his first economics article ten years after reading Adam Smith, and eventually the bullion controversy brought him fame in the economic community for his theory of inflation in 19th century England. This theory became known as monetarism, the theory that a surplus of currency leads to inflation. He also played a role in the rise of classical economics, which meant that he fought for free trade and free competition without government interference by enforcing laws or restrictions.