Ricardo Barro

Running Head : IntroductionThe attempt to build macro economic models on the basis of concrete microeconomic fundamentals was expanded in the 1970 s through intense scholarly inquisition into the 19th coke classical macro economics . A notable development was the issue of the relationship between taxation and public debt . David Ricardo , a 19th ampere-second economist , had predicted that taxation and public debt did exert equivalent personal effects . His prediction was later justified and further developed , by prof Robert J . Baro who independently re-examined the concept Buchanan (1976Biography of David Ricardo p check to Snowdon Vane (2002 , David Ricardo was one of the `greatest theoretical economists of all sentence . Born in London , on April 19th , 1772 , to a Jewish father who was a prosperous Merchant Banker , he started a career as a stock talk terms by joining his father s trade in 1776 at the age of 14 . ECONLIB (2008 ) notes that , Ricardo developed interest in economic possibleness after reading Adam Smith s go for , `The Wealth of Nations wrote his first economics article aged xxx seven , was a firm believer in the numeric theory of money , which evolved to be known as monetarism in contemporary society , we would note that Ricardo was a monetaristA prominent portion to Eng domain s economy was the resolution of the infamous `bullion controversy , of 1809 a controversy in which inflation engulfed England as a payoff of the Bank of England s issuance of excess bank notes . His 1815 essay name `Essay on the Influence of a Low outlay of Corn on the Profits of Stocks is said to have been a precursor of the law of diminishing returns a very consequential economics law which predicts a reduction of output when factors of occupation are increased while resources are fixedHe is further state to have opposed protectionist Corn Law , thus was an promote of free trade . He believed that the placement of trade barriers promote unnecessarily high rent rates leading to artificially high food prices .

He was also a key out developer of the concept of comparative advantage also an important economics concept which asserts that a country is better off when it acquires goods from other country which produces the same good at a relatively cheaper costHe is further credited with his use of complex equations to arrive at economic solutions , hence popularizing the application of mathematical tools to economic digest , a notable example , his theory of rents ECONLIB (2008 . In the theory , Ricardo shows mathematically that the increase in population growth resulted into an step-up in demand for land hence additional land must be cultivated to meet the additional write off . As these increments arises , rents of all land rise hence the network fallDavid Ricardo and the Ricardo-Barro Equivalence Theorem (Ricardian EquivalenceThe Ricardo-Barro equivalence theorem was first articulated by David Ricardo , though in its recent form , was expanded by Professor Robert Barro thus the name `Ricardo-Barro EquivalenceThe model is a notable division of Ricardo and tackles he issue of public debt . Is public debt...If you want to irritate a full essay, order it on our website: Orderessay

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