Richard Stone was a Keynesian economist and pioneer throughout the development of tactics of national accounting, for which he gained the 1984 Nobel Prize in economics.
Stone is the author of Input-Output and National Accounts, and Mathematical Models of the Monetary device and Other Essays.
Richard Stone died on Dec. 6, 1991.
Key Takeaways
- Richard Stone was a Keynesian economist known as the “father of national income accounting.”
- He earned the Nobel Prize in economics for standardizing national accounts in line with double-entry accounting.
- Sir Richard Stone was commemorated with a knighthood by means of Queen Elizabeth II in 1978.
Early Lifestyles and Education
Richard Stone was born on Aug. 30, 1913, in London, England. He earned some extent in economics from Cambridge School in 1935. As a member of the Political Monetary device Club at King’s College, Stone studied with economist John Maynard Keynes.
In every single place World Fight II, he served as an economist for the Central Monetary Knowledge Service of the Places of work of the Fight Cabinet. In 1945, Stone was appointed director of the dep. of applied economics at Cambridge School, where he remained as a professor until 1980.
Double-Get entry to Accounting
Stone was the main economist to incorporate double-entry accounting into national accounts. Regularly referred to as balancing the books, the program requires every income products on a balance sheet to be offset by means of a corresponding expenditure.
As a member of the Central Monetary Knowledge Service of the Places of work of the Fight Cabinet in 1940, Richard Stone assisted long run Nobel Laureate James Meade in surveying the economic scenario of the United Kingdom all over World Fight II.
The pair complex the United Kingdom’s first national accounting of financial statistics, detailing all government income and consumption. Underneath the steering of John Maynard Keynes, their white paper, entitled “An Analysis of the Assets of Fight Finance and an Estimate of the National Income and Expenditure in 1938 and 1940,” supplied a framework that marked the beginning of a national account.
Richard Stone’s approach of measuring investment, government spending, and consumption at the national stage helped define the Software of National Accounts (SNA), the worldwide usual for measuring a rustic’s monetary activity. Since 1947, the SNA has been carried out globally and used by world organizations identical to the United Global places.
Notable Accomplishments
In 1962, Richard Stone co-founded the Cambridge Enlargement Problem with Alan Brown. Using monetary statistics and econometrics, the gang created an entire know about of the British financial device throughout the years following World Fight II.
At the Cambridge Enlargement Problem, Stone and Brown standardized the use of a social accounting matrix (SAM), which represents the waft of all monetary transactions that occur inside of an financial device. It is a matrix representation of the national accounts for a given country and will also be extended to include non-national accounting flows for a complete space.
In 1970, Stone become the chair of the College Board of Economics and Politics at Cambridge School. He served as president of the Royal Monetary Society from 1978 to 1980.
How Did Richard Stone Have an effect on International Accounting Necessities?
Richard Stone helped define the Software of National Accounts. Intended for use by means of all world places the least bit stages of financial development, the SNA provides a framework for calculating monetary statistics and a method for managing national accounts.
How Did Richard Stone’s Statistical Artwork in the United Kingdom Have an effect on Other Global places?
Richard Stone’s Cambridge Enlargement Problem studied the British financial device using his Social Accounting Matrix (SAM), a matrix representation of the national accounts for the United Kingdom. However, the program translated globally and supplied any nation with a snapshot of its financial device using input-output analysis.
What Was once Richard Stone’s Newsletter “Characteristics?”
Richard Stone’s first analyses of British monetary conditions were detailed in Characteristics, a small London e-newsletter that Stone wrote steadily and early in his career. Stone lined topics like employment, output, consumption, retail industry, investment, and world industry.
The Bottom Line
Richard Stone’s contribution to national income accounting reverberates globally today. His incorporation of the double-entry approach created a world usual for international locations and world firms.
