THOMAS JOPLIN AND CLASSICAL MACROECONOMICS

D.P. O’Brien, Emeritus Professor of Economics, University of Durham, UK

’Brien has made a powerful, well-researched case for Joplin’s theoretical predominance.’

• Part 1 Biographia: the banking reformer - the Newcastle background, from banking to macroeconomics, the struggle for recognition, country-wide joint-stock promotion, the Major schemes, the break with the National Provincial; defence and disappointment - the joint stock defence campaign, other business affairs, monetary reform in the 1840s, a pioneer unrewarded, the mysterious adversary, final attempts to obtain coompensation, the last years; Joplin and his fellow economists - Joplin and his predecessors, the physiocrats and Smith, undigested material, Joplin as a controversialist, bullionist precursors, Joplin and the Birmingham school, the banking school, Ricardo, the currency school and the Act of 1844. Part 2 The macroeconomic model: income, expenditure and aggregate monetary demand - national output and expenditure, the basic macro model; problems of a paper currency - problems of note issue, the rate of interest, "abstract" and "consumptive" circulation, country banks and country bank notes; monetary disequilibrium - the London Money Market, savings and investment, the role of government expenditure in aggregate demand, problems of monetary control in the Bank of England. Part 3 The banking system: the principle of metallic fluctuation - Joplin on convertibility, the "metallic" principle, a national money supply, Joplin's "metallic" plan - the "Outlines", evolution of the plan, modifications to the plan, proposed operation of the plan - the currency school disowned; the structure of banking - the problem of partnerships, joint stock organization, a joint stock banking structure; competition and regulation - no "free banking", banking regulation proposals, the Bank of England. Part 4 Trade and agriculture: agricultural prices and the monetary system - the agricultural sector, the corn laws, monetary forces and the price of corn, monetary reform priority; reciprocal demand - barter equilibrium, relative international prices and reciprocal demand, protection and the terms of trade. Part 5 Models and data: methodology and the use of data - Joplin's methodology, Joplin's use of data, testing Joplin's hypotheses; a former Joplin model - variable list, the goods market, the money market, the balance of payments, aggregate supply and the labour market, aggregate demand. Part 6 Conclusion: Joplin's achievement.