Adam Smith and his vision on money and the financial system

Abstract

The purpose of this article is to highlight the importance of Adam Smith's thinking on the analysis of money, although his ideas are not the starting point of the theory of money today, his contributions on this subject are rarely highlighted, possibly because political economy focused on the theory of value. His theoretical ideas on money were and have been relevant for a better understanding of money in the financial system, from his questionable contribution to the discussion of the origin of money and the functioning of barter economy, as well as bank money and its functioning in the economic system, in order to subsequently liquidate debts, which is currently known as monetary reflux.