Sri Lanka (ex-Ceilan) Map for Thornton begins a tradition of money of integrating the rate of interest and a mechanism by which changes in the quantity of money affect the price level. In his classic presentation, the BANK OF ENGLAND as a CENTRAL BANK, with all or almost all the modern functions of such a bank, came to play a vital role in the credit process and therefore in the money creation or destruction process. The bank rate thus performs the role of equating the demand and supply of funds (that is to say, credit and the quantity of money). Thornton was among the first to establish the conditions for monetary equilibrium by considering the rate of interest as the adjusting mechanism.
Knut Wicksell (1898) continued in the same vein as Thornton, albeit one via David RICARDO rather than Thornton, and firmly established the Swedish School as one of the foremost in monetary theory.
Sri Lanka Ex-Ceilan Map Gallery Photos
Sri Lanka Ex-Ceilan Map
Wicksell's innovation was to clearly spell out the transmission mechanism of monetary disturbances. Wicksell pioneered the saving-investment approach to money.
Sri Lanka (ex-Ceilan) Map 2016.