Italian abbot and official, Galiani was one of the leaders of the "Neapolitan Enlightenment" and the initiator the Italian utilitarian tradition. At the Neapolitan embassy in France from 1759 to 1769, Galiani knew many contemporary French economists, notably the Physiocrats, of whom he was one of the most formidable opponents. He rejected much of the Physiocratic analysis, notably its "land theory of value". In 1751, Galiani introduced an alternative theory of value based of utility and scarcity, making him therefore the "Grandfather of the Marginalist Revolution". His 1770 piece provided a quite modern analysis of balance of payments.
Despite his theoretical brilliance and his sympathy with the idea of "natural" laws in economics, Galiani was a rather practical man, skeptical about the reach of abstract theory, particularly when action was necessary and urgent. He was repelled by the wide-eyed policies called for by the Physiocrats, which he believed were half-baked, unrealistic and impractical and, in times of crisis, downright dangerous. Watching the Physiocrats dither about "natural state" during a famine in France in 1768 infuriated the acid-tongued Galiani (and many other contemporaries). He maintained, throughout his life, a consistently healthy suspicion of any theory that purported to claim "universality" of application, noting that propositions which may work in one time or place, might not work in others. He could count Denis Diderot as one of his strongest supporters and followers -- as well as good friend.
Major Works of Ferdinando Galiani
Resources on Ferdinando Galiani