In the voice of Eric Kim

When we talk about great economic thinkers, names like Adam Smith or David Ricardo often dominate the conversation. But there’s one figure who tends to fly under the radar, even though his insights are just as foundational and often even more modern in their clarity: Ferdinando Galiani. Galiani might not be a household name, but he’s one of those rare individuals whose work bridges the gap between the classical and modern schools of economic thought. His treatise, “Della Moneta” (On Money), published in 1751, feels uncannily relevant today as we navigate our own complex, volatile, and often confusing global economy.

So, why should we care about Galiani now, centuries after his work was published? It comes down to a few key reasons: his clarity on the nature of value, his early articulation of supply and demand, and his skepticism of currency manipulation. Let’s dive into each.

The Nature of Value

Galiani’s insights into value are, in many ways, the cornerstone of modern economics. He was one of the first to argue that value is not intrinsic; it’s not something inherent in objects themselves but rather something assigned by human desire and need. This idea might sound obvious to us now, but in the 18th century, it was a groundbreaking shift in thinking. Before him, the prevailing view was often that value was tied to labor or the materials used in production, a theory famously held by Adam Smith.

In today’s economy, where the value of digital products or cryptocurrencies can skyrocket based purely on perceived worth, Galiani’s theory feels remarkably ahead of its time. His notion that scarcity and utility—not the physical qualities of an object—determine value laid the groundwork for what we now call the subjective theory of value, a principle that underpins everything from pricing strategies to financial speculation.

Supply, Demand, and Price

One of the most striking things about Galiani’s work is how clearly he articulated the relationship between supply, demand, and price—again, long before these concepts became mainstream in economic theory. In “Della Moneta”, he explained how abundance naturally drives prices down and scarcity pushes them up, a simple but powerful observation that resonates with anyone who’s ever experienced the housing market or watched airline prices fluctuate during the holidays.

What’s even more impressive is the context in which Galiani wrote. He wasn’t just theorizing in an academic bubble; he was actively engaged in the real-world economic policy of his time. His work reflects a keen understanding of how markets operate, not in the abstract, but in their everyday, gritty realities. Galiani wasn’t just a thinker—he was a pragmatist, and that makes his insights even more valuable today as we grapple with inflation, supply chain issues, and market volatility.

Skepticism of Currency Manipulation

Another reason Galiani’s work matters today is his skepticism toward currency debasement and manipulation. In “Della Moneta,” he warned against the dangers of reducing the precious metal content in coins—a common practice by governments looking to stretch their resources—because it eroded public trust and destabilized the economy. Essentially, Galiani understood what we now recognize as inflationary risks before central banking was even a concept.

Fast forward to today’s world of quantitative easing, interest rate manipulation, and cryptocurrency booms, and you see the relevance of his insights. Galiani recognized that money only works when people trust it. Once that trust is broken—whether through government overreach, rampant inflation, or instability in the currency itself—commerce and trade suffer. His emphasis on the role of confidence in currency value resonates with our current economic moment, where trust in fiat currencies and decentralized currencies alike is constantly being negotiated.

Conclusion: A Voice for Our Time

So, why does Galiani matter? Because he was an early voice in what we now understand as core principles of economic theory, from subjective value to supply and demand to the risks of currency manipulation. But more than that, Galiani’s work matters because it’s so readable, so applicable, and so modern in its approach.

In a world where economics can often feel detached from reality—full of arcane models and complex theories—Galiani reminds us that economics is, at its core, a study of human behavior. And in this way, his work transcends the 18th century. He was a thinker who understood not only the mechanics of money and trade but also the emotions, trust, and perceptions that drive the entire system. If there’s one thing we should learn from Galiani, it’s that economics is never just about numbers; it’s about people. And that’s why, in our modern age of economic uncertainty and complexity, Galiani still matters.