The Cantillon Effect

Home / Glossary / The Cantillon Effect

The Cantillon Effect

What is The Cantillon Effect

A shift in relative prices brought on by a change in the money supply is known as a Cantillon effect. It is the growth of the amount of money in an unequal manner. The phrase was first used by Richard Cantillon, a French banker, and philosopher, in the 18th century. Essay on the Nature of Trade in General, also known as Essay on the Nature of Trade in General, was written by Richard Cantillon, a 1680s-born author. Cantillon was a generation before Adam Smith.

The middle class is farthest from fresh money in the current monetary system, while banks and companies are closest. This is fixed by Bitcoin, which distributes new bitcoins more fairly by only awarding them to “miners” who safeguard the system.


My Newsletter

Sign Up For Updates & Newsletters