Showing posts with label original economic use of the word inflation. Show all posts
Showing posts with label original economic use of the word inflation. Show all posts

Monday, August 4, 2014

The Original Economic Use of the Word “Inflation”?

When and what was the first occurrence of the word “inflation” in English in an economic sense?

The earliest example in the Oxford English Dictionary (s.v. “inflation,” sense 6) comes from 1838, but that is clearly not the earliest occurrence.

After quite a bit of research on Google books, this appears to be the earliest I can find, and it occurs in the English translation of Jean Baptiste Say’s A Treatise on Political Economy (1821):
(1) “The experience of English commerce has, however, proved, that a casual inflation of the price of domestic, and depression of that of external products, may be the basis of permanent commerce.”
Say, Jean Baptiste. 1821. A Treatise on Political Economy; or, The Production, Distribution, and Consumption of Wealth (vol. 1; trans. by C. R. Prinsep from 4th French edn.). Longman, Hurst, Rees, Orme, and Brown, London. p. 176.
Of course, I may well be wrong, and welcome anyone who can prove me wrong.

At around the same time, the participle “inflated” was being used in an economic sense too and was applied to prices:
(1) “The permanent advance, therefore, was very little short of what has been deemed the inflated or speculative price of the present bank. …. This inflated price, therefore, was very little higher than the level stationary price of the stock of the late bank of the United States.”
from John Sergeant’s “Speech on the Bank of the United States,” delivered in the House of Representatives. February 22, 1819 in H. Niles (ed.). Supplement to Volume the Sixteenth of Niles Weekly Register. Franklin Press, Baltimore. 1819. p. 138.

(2) “We have hitherto regarded the inflated price of grain as the only evil to be apprehended. But England, in 1815, was alarmed by a prospect of an opposite evil; viz, that its price would be reduced too low, by the influx of foreign grain.”
Say, Jean Baptiste. 1821. A Treatise on Political Economy; or, The Production, Distribution, and Consumption of Wealth (vol. 1; trans. by C. R. Prinsep from 4th French edn.). Longman, Hurst, Rees, Orme, and Brown, London. p. 296.
In short, the earliest examples of “inflation” and “inflated” seem to refer to prices, not money supply or currency inflation, despite libertarian claims to the contrary.

BIBLIOGRAPHY
Niles, H. (ed.). 1819. Supplement to Volume the Sixteenth of Niles Weekly Register. Franklin Press, Baltimore. 1819.

Say, Jean Baptiste. 1821. A Treatise on Political Economy; or, The Production, Distribution, and Consumption of Wealth (vol. 1; trans. by C. R. Prinsep from 4th French edn.). Longman, Hurst, Rees, Orme, and Brown, London.