Marx on Money – Part 2 – Money and Capitalism

1) Correctly says (p51) and footnote 1 that Marx:

adopts a monetary theory of credit and not a theory of credit money (similar to Schumpeter’s distinction…

Footnote 1 refers to Schumpeter’s “History of Economic Analysis, O.U.P. p718. Presumably corresponds to the Routledge edition p686 in Chapter 7 on “Money Credit and Cycles”, Section 4 “The Theory of Credit”.

Footnote to p686:

I hope that this sentence is self-explanatory. It will, however, be illustrated in the money chapter (8) of Part IV by a discussion of one of the consequences of economists’ failure to go through with the idea adumbrated above

Schumpeter rejects the monetary theory of credit adopted by Marx and other classicals. Supports a theory of credit money, which needs close study as it looks a lot more like the current appearance and it seems likely that failure to follow Marx’s historical and conceptual sequence of development and take it further to current situation is the source of much confusion.

Will make notes later when studying Schumpeter 8 of Part IV (and the rest) for this and other reasons.

2) Admits p55 footnote 10:

I shall not discuss the “period of turnover” so as not to prolong the exposition.

Volume 2 does indeed “prolong the exposition”. Can be explained much more briefly with modern algebraic notation given near universal secondary school mathematics. Essential for developing credit and indeed whole of commerce from both Volumes 2 and 3. No way to get preliminaries needed for understanding credit money or cycles without this stuff.

Should be able to get a lot from course notes and textbooks on Supply Chain Management, including financing of Accounts Payable and Receivable, inventories, working capital and capex, working period, circulation period, input and output stocks, distributors, wholesalers, retailers, direct channels, logistics, capacity levels, sales and operations planning, turnovers, gestation period for fixed capital projects etc etc. See also finance courses and project financing.

Actually model this with detailed connections to Accounting Systems (and System of National Accounts) using UML models like “Business Process Model and Notation” and other actual interchange protocol standards etc etc from OMG and elsewhere.

Hopefully provides a clear “micro” basis for Maksakovsky’s “macro” treatment and possibly even executable models for Agent based Computational Economics.

3) Have read pp51-72 (plus front and back matter). Deferring rest.


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