MARX AND THE THEORY OF THE MONETARY CIRCUIT

Andrew B. Trigg

A chapter in Neoliberalism in Crisis, Accumulation, and Rosa Luxemburg's Legacy, 2004, pp 143-160 from Emerald Group Publishing Limited

Abstract: The theory of the monetary circuit, as developed in its most powerful form by Graziani (1989), has made a significant contribution to the analysis of credit money in Marxian economics. A key issue is the extent to which circuit theory fails to take into account the relationship between sectors producing capital and consumption goods. In Marx’s reproduction schema, how much money do capitalists need to advance in order for exchange between sectors to balance, and for the circuit to be closed? The purpose of this paper is to address this issue by examining different models of the monetary circuit, each of which has a textual grounding in Marx’s often contradictory musings in Capital, Volume 2. Alongside alternative conceptions of the circuit of money, different interpretations exist about the role of the multiplier, which can be nested in Marx’s reproduction schema. The problem, from a Marxian point of view, is that in the existing literature investment is usually confined to the capital goods sector. It can be argued that Marx, for the most part, viewed investment as involving accumulation in both departments of production. Using a multiplier framework, derived from input-output technology, this wider treatment of investment is considered as an alternative way of modelling the circulation of money. In addition to contributing to Marxian analysis of the money circuit, this approach could also be more accessible to a wider Post Keynesian audience, since a scalar Keynesian multiplier is employed.

Date: 2004
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.101 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.101 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:rpeczz:s0161-7230(04)21006-9

DOI: 10.1016/S0161-7230(04)21006-9

Access Statistics for this chapter

More chapters in Research in Political Economy from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().