2/26(Thu) Cantillon Effect

Cantillon usually refers to Richard Cantillon (1680s–1734) — an Irish-French economist and one of the earliest thinkers of modern economics.

Who he was

Banker, investor, and economic theorist active in France during the early 18th century

Closely observed financial bubbles like the Mississippi Company episode

Influenced later economists including Adam Smith and the classical school

Why he matters in economics

1) Early founder of economic theory

His book Essai sur la nature du commerce en général (written ~1730, published 1755) is often considered one of the first systematic economics texts.

2) Cantillon Effect

New money enters the economy unevenly

Those who receive it first benefit most (e.g., banks, asset owners)

Prices then rise gradually, redistributing wealth

A core idea in modern monetary economics and inflation debates

3) Entrepreneur concept

Cantillon described the entrepreneur as a risk-taker who buys at certain prices and sells at uncertain prices — a foundational definition still used today.

4) Spatial economics

He analyzed how land, population, transport, and cities shape markets — an early form of location and urban economics.

If you meant something else by “cantillon” (for example, the Cantillon effect, the brewery Brasserie Cantillon, or a detailed economic explanation), tell me and I’ll go deeper.

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