Who They Were
David Hume (1711–1776) was a Scottish philosopher whose essays on commerce, money, and trade influenced economic thought. Hume articulated the quantity theory of money and analyzed how monetary expansion affects prices and economic activity. His work prefigured later monetary theory.
Core Contribution
Hume's contribution was economic analysis grounded in empirical observation. He explained that increases in money supply lead to inflation, not increased real economic output. This insight remains central to monetary economics.
Why They Matter Today
Hume's quantity theory remains foundational. Modern inflation targeting by central banks descends from Humean logic.