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Revenues and demand in a monetary economy of production
[Revenus et demande dans une économie monétaire de production]

Author

Listed:
  • Edouard Cottin-Euziol

    (LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - IMT - Institut Mines-Télécom [Paris] - IBSHS - Institut Brestois des Sciences de l'Homme et de la Société - UBO - Université de Brest - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris])

  • Nicolas Piluso

    (CERTOP - Centre d'Etude et de Recherche Travail Organisation Pouvoir - UT2J - Université Toulouse - Jean Jaurès - UT - Université de Toulouse - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse - CNRS - Centre National de la Recherche Scientifique)

Abstract

In a monetary economy of production, Say's law is invalid for several reasons. On the basis of some of these refutations (Schmitt, 1984; Renaud, 2000), it is possible to state that the revenues generated by the production process are structurally lower than the supply price of production. We study here the dynamics of such an economy and obtain two main results. First, the long-term debt level of this economy has to increase during a growth phase to enable demand to grow at the same pace as supply. Secondly, due to the repayment of this debt, the gap between supply and net revenues generated by the production process widens along a growth phase.

Suggested Citation

  • Edouard Cottin-Euziol & Nicolas Piluso, 2020. "Revenues and demand in a monetary economy of production [Revenus et demande dans une économie monétaire de production]," Working Papers hal-02511407, HAL.
    • Handle: RePEc:hal:wpaper:hal-02511407
    Note: View the original document on HAL open archive server: https://hal.science/hal-02511407
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    References listed on IDEAS

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    1. Alberto ZAZZARO, 2002. "How Heterodox is the Heterodoxy of the Monetary Circuit Theory? The Nature of Money and the Microeconomy of the Circuit," Working Papers 163, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. Louis-Philippe Rochon & Sergio Rossi (ed.), 2003. "Modern Theories of Money," Books, Edward Elgar Publishing, number 2506.
    3. Jean-Francois Renaud, 2000. "The Problem of the Monetary Realization of Profits in a Post Keynesian Sequential Financing Model: Two solutions of the Kaleckian option," Review of Political Economy, Taylor & Francis Journals, vol. 12(3), pages 285-303.
    4. Graziani,Augusto, 2003. "The Monetary Theory of Production," Cambridge Books, Cambridge University Press, number 9780521812115.
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    6. Edouard Cottin-Euziol & Louis-Philippe Rochon, 2013. "Circuit with Multi-period Credit," Review of Political Economy, Taylor & Francis Journals, vol. 25(3), pages 461-475, July.
    7. Louis-Philippe Rochon & Mario Seccareccia (ed.), 2013. "Monetary Economies of Production," Books, Edward Elgar Publishing, number 14862.
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    Keywords

    Economic Growth; Monetary Economy of Production; Repayment of Past Bank Credits;
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