What is specie flow?

Torrens Hume thought he should tell you a bit about Specie Flow and himself.

This will mostly be an international macroeconomics blog focused on international monetary issues. Hence the reference to David Hume’s famous mechanism. That said, Hume is a bit regretful that he didn’t buy the domain name “species flow”, because from time to time the blog will also touch on some more every day issues – people simply going through the flow of life.

Who is Torrens Hume?
The idea for the nom de plume came to Hume when he sat at his desk one day desperately seeking a screen name to disguise a comment he was posting on someone else’s blog. He wanted to capture the idea that the global macro economy is continuously “interfered with” by what, at times, seem to be bizarre political and non economic events that disrupt the natural adjustment of the global economy.

So he came quickly came up with Torrens Hume. Torrens is a river and Hume  a dam. Torrens and Hume were also great economic thinkers. Robert Torrens formulated and introduced a system of property rights (the Torrens Title system ) in 1858 after a disastrous property boom that is now used in many other jurisdictions. David Hume  is a Scottish philosopher most famous for his price specie flow mechanism that describes how prices adjust to eliminate unsustainable trade balances. At the time, it all seemed to somehow fit together. That was then, now the concepts also seem like a good foundation for a blog. So here we are.

Hope you will post comments.

2 thoughts on “What is specie flow?

  1. “international specie flows”

    Found this phrase in an oversized picture book called Michigan City: The First 150 Years. The term was part of an explanation of the Panic of 1937.

    1. Thanks Donald. This is most interesting and appreciated. I will keep an eye out for that book in may travels, and look into the events of 1937 (of which I must say I don’t know anything!).

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