The arguments developed by The British scholar Thomas Tooke in the context of the Banking School-Currency School debates over the Bank Act of 1844 constitute the starting point for many important threads of discussion in contemporary monetary and macroeconomic theory. The ideas Tooke developed in his important pamphlet An Inquiry into the Currency Principle and his six volume A History of Prices and the State of Circulation have been quite influencial. In particular, his discussions on the

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... e of credit money, the endogeneity of money supply, the interest rate as a cost component, the monetray transmission mechanism, the speed of balance of payments adjustments and free banking have all been recurrent themes in the literature. In this context this paper aims to provide a brief overview of Tooke's original ideas, which have somewhat been underappreciated.