Money, interest, and capital accumulation in Karl Marx's economics: A monetary interpretation
Starting from Schumpeter.s important distinction between .real analysis. and .monetary analysis., in this paper it is shown that major elements of Marx.s economic theory fall in the camp of monetary analysis and the implications for Marx.s theory of capital accumulation are derived. First, Marx.s theory of labour value has to be considered a .monetary theory of value. because .abstract labour. as the social substance of value cannot be measured without a social standard of value. Money as a social representative of value, therefore, is introduced at the very beginning of Marx.s microeconomics. Marx.s rejection of Ricardo.s interpretation of Say.s Law requires that money as a means of circulation and as a means of payment is nonreproducible and therefore cannot be a commodity. Second, in the schemes of reproduction it becomes clear, that the realisation of profits for the capitalist class as a whole requires money advances, which have to increase by means of rising credit in a growing economy. Third, the rate of interest in Marx.s economics is conceived of as a monetary category determined by relative powers of financial and industrial capitalists. Therefore, similar to post-Keynesian theories of distribution and growth, the rate of capital accumulation is determined by the expected rate of profit and the exogenous rate of interest. From this it follows, that any .real theory. of crisis and stagnation, as the falling rate of profit theory of crisis, cannot be sustained within Marx.s monetary analysis.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Postal: Bertha-von-Suttner-Platz 1, D-40227 Düsseldorf|
Phone: +49 211 7778 0
Fax: +49 (0)211-7778-3124
Web page: http://www.boeckler.de/index_wsi.htm
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shaikh, Anwar, 1978. "Political Economy and Capitalism: Notes on Dobb's Theory of Crisis," Cambridge Journal of Economics, Oxford University Press, vol. 2(2), pages 233-51, June.
- Lapavitsas, Costas, 1994. "The Banking School and the Monetary Thought of Karl Marx," Cambridge Journal of Economics, Oxford University Press, vol. 18(5), pages 447-61, October.
- L. R. Wray, 1990. "Money and Credit in Capitalist Economies," Books, Edward Elgar Publishing, number 474, April.
- Claudio Sardoni, 1986. "Marx and Keynes on Effective Demand and Unemployment," History of Political Economy, Duke University Press, vol. 18(3), pages 419-441, Fall.
- Bhaduri, Amit & Marglin, Stephen, 1990. "Unemployment and the Real Wage: The Economic Basis for Contesting Political Ideologies," Cambridge Journal of Economics, Oxford University Press, vol. 14(4), pages 375-93, December.
- Arestis, Philip, 1996. "Post-Keynesian Economics: Towards Coherence," Cambridge Journal of Economics, Oxford University Press, vol. 20(1), pages 111-35, January.
- Costas Lapavitsas, 1997. "Two Approaches to the Concept of Interest-Bearing Capital," International Journal of Political Economy, M.E. Sharpe, Inc., vol. 27(1), pages 85-106, April.
- Marglin, Stephen A, 1984. "Growth, Distribution, and Inflation: A Centennial Synthesis," Cambridge Journal of Economics, Oxford University Press, vol. 8(2), pages 115-44, June.
- Hein, Eckhard, 1999. "Interest Rates, Income Shares, and Investment in a Kaleckian Model," MPRA Paper 18607, University Library of Munich, Germany.
- Michael Williams, 2000. "Why Marx Neither Has Nor Needs a Commodity Theory of Money," Review of Political Economy, Taylor & Francis Journals, vol. 12(4), pages 435-451.
- Hyman P. Minsky, 1992. "The Financial Instability Hypothesis," Economics Working Paper Archive wp_74, Levy Economics Institute.
- Marc Lavoie, 1995.
"Interest Rates In Post-Keynesian Models Of Growth And Distribution,"
Wiley Blackwell, vol. 46(2), pages 146-177, 06.
- Lavoie, M., 1993. "Interest Rates in Post-Keynesian Models of Growth and Distribution," Working Papers 9314e, University of Ottawa, Department of Economics.
- Garegnani, Pierangelo, 1978.
"Notes on Consumption, Investment and Effective Demand: I,"
Cambridge Journal of Economics,
Oxford University Press, vol. 2(4), pages 335-53, December.
- Garegnani, Pierangelo, 1979. "Notes on Consumption, Investment and Effective Demand: II," Cambridge Journal of Economics, Oxford University Press, vol. 3(1), pages 63-82, March.
- Lavoie, Marc, 1996.
"Horizontalism, Structuralism, Liquidity Preference and the Principle of Increasing Risk,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 43(3), pages 275-300, August.
- Lavoie, M, 1995. "Horizontalism, Structuralism, Liquidity Preference and the Principle of Increasing Risk," Working Papers 9513e, University of Ottawa, Department of Economics.
- Fan-Hung, 1939. "Keynes and Marx on the Theory of Capital Accumulation, Money and Interest," Review of Economic Studies, Oxford University Press, vol. 7(1), pages 28-41.
- George Argitis, 2001. "Intra-capitalist Conflicts, Monetary Policy and Income Distribution," Review of Political Economy, Taylor & Francis Journals, vol. 13(4), pages 453-470.
- Trevor Evans, 1997. "Marxian Theories of Credit Money and Capital," International Journal of Political Economy, M.E. Sharpe, Inc., vol. 27(1), pages 7-42, April.
- Hein, Eckhard & Ochsen, Carsten, 2000. "Monetary interest rates, income shares, and investment: Theory and empirical evidence for France, Germany, the UK, and the USA," Violette Reihe Arbeitspapiere 11/2000, Promotionsschwerpunkt "Globalisierung und Beschaeftigung".
- Rogers,Colin, 1989. "Money, Interest and Capital," Cambridge Books, Cambridge University Press, number 9780521359566, October.
- Thomas I. Palley, 1996. "Accommodationism versus Structuralism: Time for an Accommodation," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 18(4), pages 585-594, July.
When requesting a correction, please mention this item's handle: RePEc:zbw:wsidps:102. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.