Preliminaries to a Monetary Theory of Production: The Labour Theory of Value, Liquidity Preference and the Two Price Systems

1998 ◽  
pp. 286-300
Author(s):  
L. Randall Wray
Keyword(s):  
Monetary Theory ◽  
Theory Of Value ◽  
Theory Of Production

Keynes and Anchorless Banking

1998 ◽  
Vol 20 (1) ◽  
pp. 71-82 ◽  
Author(s):  
Thomas K. Rymes
Keyword(s):  
General Theory ◽  
Supply And Demand ◽  
Monetary Theory ◽  
John Maynard Keynes ◽  
Monetary Economy ◽  
The Future ◽  
Theory Of Value ◽  
Working Out ◽  
Theory Of Production ◽  
Special Case

In The General Theory, John Maynard Keynes broke with the quantity theory of money, not just in working out a monetary theory of production but, as he says, in arguing the case for a monetary theory of value. Keynes writes (CW, 7, pp. xxii-xxiii):A monetary economy, we shall find, is essentially one in which changing views about the future are capable of influencing the quantity of employment and not merely its direction. But our method of analyzing the economic behaviour of the present under the influence of changing ideas about the future is one which depends on the interaction of supply and demand, and is in this way linked up with our fundamental theory of value. We are thus led to a more general theory, which includes the classical theory with which we are familiar, as a special case.

150 Years of Das Kapital and No End in Sight. Unsystematic Remarks on a Never-Ending Story

2019 ◽  
Vol 29 (6) ◽  
pp. 23-46
Keyword(s):  
Political Economy ◽  
Formal Structure ◽  
Monetary Theory ◽  
Economic Crises ◽  
General Introduction ◽  
The Third ◽  
Social Forms ◽  
Adequate Understanding ◽  
Theory Of Value ◽  
The Masses

Michael Heinrich, one of the leading Marx scholars, provides a general introduction into Das Kapital with emphasis on the latest interpretations of it. The circumstances surrounding its writing and publication are shown to have interfered with an adequate appreciation of it. The formal structure and organization of the first volume are obstacles to readers and demand much from their education and intellect. The article summarizes the basic trajectories of Marx’s criticisms of political economy, including the critique of naturalizing social forms arising under capitalism and Marx’s original monetary theory of value. The author disentangles Marx’s Das Kapital from views mistakenly ascribed to it, such as the idea that value is determined solely by labor and the prediction of pauperization of the masses. First, Marx’s theory of value goes well beyond explaining prices under capitalism. Second, his main prophecy concerned the inevitable growth of inequality between the masters of capital and the employed classes and did not forecast impoverishment. The paper also points out that the sequence of publication of different volumes of Das Kapital caused lacunae in interpreting Marx’s oeuvre. For instance Engels’ efforts made the third volume more accessible to readers but also obscured the overall pattern of Marx’s thinking. the article shows that Das Kapital was a dynamic and fluctuating project to such an extent that Marx himself several times revisited his views of the causes of economic crises and falling profits and also intended to deal extensively with ecological issues. Reaching an adequate understanding of the theory contained in Das Kapital cannot depend on the manuscripts of those volumes alone. Marx’s notebooks, which have only recently published, are an indispensable aid to understanding it.

The Neue Marx-Lektüre and the ‘Monetary Theory of Value’ in the East German Labour-Value Measurement Debate

2021 ◽  
Vol 29 (2) ◽  
pp. 29-60
Author(s):  
Paula Maria Rauhala
Keyword(s):  
Social Relation ◽  
East Germany ◽  
Monetary Theory ◽  
Measurable Quantity ◽  
The West ◽  
East German ◽  
Theory Of Value ◽  
Value Measurement ◽  
Labour Time

Abstract Proponents of a monetary interpretation of Marx’s theory of value (monetäre Werttheorie) argue that one cannot estimate the amounts of socially necessary labour time that lie behind the prices, an interpretation usually ascribed to the West German Neue Marx‑Lektüre. As Hans-Georg Backhaus began fleshing out his monetary interpretation in the early 1970s, he referred explicitly to debate among economists in early‑1960s East Germany about the possibility of estimating quantities of labour value in terms of commodities’ labour content. In fact, scholars who articulated a powerful position in the latter discussion closely approximated the Neue Marx-Lektüre’s ‘monetary interpretation’. They held that expressing labour value in terms of labour time is impossible: the substance of value is not a measurable quantity of labour time but, rather, a social relation. Hence, it is problematic that Neue Marx-Lektüre adherents today should maintain an inaccurate contrast between their reading of Capital and that of ‘traditional Marxism’.

How can we restore the generality of the General Theory?

2018 ◽  
Vol 43 (5) ◽  
pp. 1397-1415 ◽  
Author(s):  
Teodoro Dario Togati
Keyword(s):  
General Theory ◽  
Research Programme ◽  
Monetary Theory ◽  
Systematic Fashion ◽  
Key Points ◽  
Theory Of Production

AbstractIn this paper, I tackle the key issue raised by Pasinetti, namely why Keynes failed to accomplish his revolution and build a unifying ‘monetary theory of production’ framework. I argue that this occurred because, following his Marshallian background, he adopted an oversimplified view of the structure of theories, a problem which, following Leontief, might be labelled as ‘implicit theorising’ (IT). By making a comparison between the General Theory and standard macroeconomics based on Lakatos’s ‘research programme’ notion, this paper explores IT in a systematic fashion and stresses two key points. First, Keynes did not attack the ‘true’ orthodox postulates but only the conclusions deriving from them. Secondly, he failed to articulate his own research programme effectively. Based on these points, the paper concludes that filling such gaps in Keynes’s theory is the precondition for restoring his generality claim.

Augusto Graziani and recent advances in the monetary theory of production

2017 ◽  
Vol 68 (2) ◽  
pp. 202-204 ◽  
Author(s):  
Giuseppe Fontana ◽  
Riccardo Realfonzo
Keyword(s):  
Monetary Theory ◽  
Recent Advances ◽  
Theory Of Production

scholarly journals An Islamic monetary theory of value and equation of exchange: evidence from Egypt (696-1517)

Humanomics ◽  
2016 ◽  
Vol 32 (2) ◽  
pp. 121-150 ◽  
Author(s):  
Adam Abdullah
Keyword(s):  
Empirical Investigation ◽  
Commodity Prices ◽  
Secondary Data ◽  
Price Stability ◽  
Monetary Theory ◽  
Value Functions ◽  
Content Type ◽  
Theory Of Value ◽  
Value Of Money

Purpose The purpose of this research is to present an Islamic monetary theory of value by analyzing real prices and real money in terms of gold and silver in Egypt from 696 to 1517, a period of 821 years from the Umayyads to the Abbasids. Design/methodology/approach This paper adopts a quantitative empirical investigation derived from a full population of secondary data to deductively evaluate the measure and store of value functions of money, to affirm an Islamic monetary theory of value, which is also inductively researched through a qualitative interpretation of documentary and content analysis of Islamic and numismatic literature. Findings The Islamic monetary theory of value leads to an Islamic equation of exchange that reconfirms the outcome of this research, where a high value of money ensures low constant real prices over the long term. Research limitations/implications The findings are based on an empirical investigation involving a single price of wheat series as a reasonable proxy for changes in wholesale commodity prices generally, which was successfully adopted by other studies. Practical implications The significance for modern monetary policy is that monetary authorities should adopt an Islamic monetary theory of value to achieve genuine monetary and price stability. Social implications Through an Islamic equation of exchange, price stability would ensure real economic growth that protects wealth for holders of money due to a stable purchasing power, and combined with Islamic equity finance, more efficiency in allocating investible resources to increase gross domestic product and employment. Originality/value The Islamic monetary theory of value ensures that there is no transfer or confiscation of wealth through inflation, which would impart gains to the issuer due to the excessive supply of money in relation to demand.

scholarly journals The Ethics Inside the Monetary Circuit: How Bank’s Social Responsibility Affects Money Creation

2016 ◽  
Vol 11 (7) ◽  
pp. 1
Author(s):  
Nadia Oliva ◽  
Andrea Pacella
Keyword(s):  
Social Responsibility ◽  
Credit Markets ◽  
Monetary Theory ◽  
Loan Rate ◽  
Money Creation ◽  
Theory Of Production ◽  
Monetary Circuit

<p>The paper aims to introduce ethical remarks into the monetary circuit (or monetary theory of production)<br />approach in order to study the mechanism of money creation when banks discriminate production on an ethical<br />plane. By the micro-foundation of the banks’ and firms’ behaviour, it will be shown that the ethical<br />discrimination of firms by banks is implemented by the differentiation of the mark-ups on the loan rate and how<br />this discrimination leads the system to create different credit markets according to the capacity (or willingness)<br />of firms to satisfy (or not) the ethical claims of the banks.</p>

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