Political economy of money and finance / Makoto Itoh and Costas Lapavitsas.

Format:

Book

Author/Creator:

Itō, Makoto, 1936-2023.

Contributor:

Lapavitsas, Costas, 1961-

Language:

English

Subjects (All):

Finance.

Economics.

Physical Description:

xviii, 301 pages ; 22 cm

Place of Publication:

New York : St. Martin's Press, 1999.

Contents:

Part I Classical Foundations

1 Classical Political Economy of Money and Credit 4

1.1 Value, commodities and money 5

1.1.1 The measurement of value 5

1.1.2 The quantity theory of money 7

1.1.3 The 'channel of circulation' 11

1.2 Money and the processes of credit 14

1.2.1 Historical and institutional background 14

1.2.2 The reflux and the balance of payments 16

1.2.3 The real bills doctrine 18

1.2.4 The bullion controversy 20

1.2.5 The banking/currency controversy 24

2 Value and Money in Marx's Political Economy 33

2.1 Money and the forms of value 33

2.1.1 Marx's theory of the forms of value 33

2.1.2 The labour theory of value and commodity exchange 37

2.2 The functions and forms of money 40

2.2.1 Measure of value 40

2.2.2 Means of exchange (or means of purchase) 43

2.2.3 Money as money 45

2.3 Money, the nexus rerum of capitalism 52

3 Interest-Bearing Capital: The Distinctive Marxist Approach 59

3.1 Preliminary analytical considerations 59

3.1.1 Marx's two approaches to interest-bearing capital 60

3.2 The formation of interest-bearing capital in the circuit of industrial capital 62

3.2.1 'Monied' capitalist and 'functioning' capitalist 62

3.2.2 Stagnant money and the circuit of capital 65

3.2.3 The rate of interest and the rate of profit 69

3.3 Precapitalist money lending 73

3.3.1 Usury and interest-bearing capital 73

3.3.2 Money lending and social reproduction 74

3.4 Neoclassical theory of interest and optimal contract design 77

Part II Principles of Credit and Finance

4 The Credit System 83

4.1 Preliminary remarks 83

4.1.1 The early historical development of credit 83

4.1.2 The representative form of the capitalist credit system 84

4.2 Commercial credit 86

4.2.1 Promissory notes and bills of exchange 87

4.2.2 The functions and limitations of commercial credit 89

4.2.3 Interest in credit prices 91

4.3 Banking credit 92

4.3.1 The discounting of bills of exchange 92

4.3.2 The liabilities of banks, bank capital and bank profit 94

4.3.3 The money market 96

4.3.4 The central bank 98

4.3.5 The social functions of banking credit 101

5 Joint-Stock Capital and the Capital Market 103

5.1 Brief historical overview 103

5.1.1 The era of mercantilism 103

5.1.2 The era of liberalism 104

5.1.3 The era of imperialism and after 105

5.2 The forms of joint-stock capital 107

5.2.1 Joint investment 107

5.2.2 The facilitation of mergers 109

5.2.3 The capital market and expected dividend yield 111

5.2.4 Founder's profit 114

5.3 The social functions of joint-stock capital 116

5.3.1 The mobilisation of capital and the efficient market hypothesis 116

5.3.2 The rate of profit of joint-stock capital and monopoly profit 119

5.3.3 Instability induced by capital market speculation 121

6 Monetary and Financial Aspects of the Business Cycle 123

6.1 Marx's analysis of monetary crises 123

6.1.1 Instability in a monetary economy 123

6.1.2 The theoretical interpretation of Marx's theory of crisis 125

6.2 Fundamental theory of the business cycle 128

6.2.1 Preliminary theoretical observations 128

6.2.2 The upswing 129

6.2.3 The final phase of the upswing 131

6.2.4 Crisis 133

6.2.5 Depression 136

6.3 Determination of the value of money over the business cycle 139

6.3.1 The quantity theory of money and the business cycle 139

6.3.2 Balancing the demand and supply of gold 141

6.4 The historical evolution of the business cycle 143

6.4.1 The transformation of the business cycle 143

6.4.2 Long-wave theories 147

6.4.3 Non-Marxist theories of instability and the business cycle 150

7 Central Banking 154

7.1 The nature of the central bank 154

7.1.1 Bank of banks 154

7.1.2 Bank of the state 157

7.1.3 Holder of international money 160

7.2 Operator of monetary policy, overseer of the credit system and lender of last resort 163

7.2.1 Monetary policy 163

7.2.2 Overseer of the credit system and lender of last resort 166

7.3 Central bank independence and free banking 170

7.3.1 Central bank independence 170

7.3.2 Free banking 175

Part III Postwar Realities and Theories

8 Loss of Control over Money and Finance 185

8.1 Relative stability under the Bretton Woods system 185

8.1.1 Four main causes of relative stability 186

8.1.2 Money and finance in the long boom 189

8.2 The inflationary crisis and the long downswing 190

8.2.1 The inflationary crisis and 'stagflation' 190

8.2.2 Overaccumulation and the transformation of the capitalist crisis 193

8.2.3 The long downswing 194

8.3 Increased financial instability 195

8.3.1 Increased economic instability 195

8.3.2 The impact of the information revolution 197

8.3.3 The limitations of economic policy 200

8.3.4 Can stability be restored? 202

9 The Rise and Fall of Keynesianism 207

9.1 The radical content of Keynes' General Theory 208

9.1.1 Rejection of Say's law 208

9.1.2 Money and interest 211

9.1.3 Expectations and effective demand 213

9.1.4 An assessment 214

9.2 The neoclassical synthesis 216

9.3 The return of a fragmented orthodoxy 219

10 Post-Keynesian Monetary Theory 226

10.1 Uncertainty, time and money 227

10.1.1 The critique of general equilibrium theory 227

10.1.2 Money, uncertainty and private property 229

10.2 Money supply endogeneity 234

10.2.1 Money supply endogeneity in Kaldor's work 234

10.2.2 Banks and the endogeneity of the money supply 236

10.2.3 Post-Keynesian critics of the horizontal money supply 238

10.2.4 Exogeneity/endogeneity and the form of money 241

10.2.5 The exchange value of endogenous credit money 242

11 Money and Credit in a Socialist Economy 246

11.1 Abolition or socialisation of money? 246

11.2 'Money' in a planned socialist economy 248

11.2.1 'Labour money' 248

11.2.2 Socialist money (S-money) 251

11.3 Money in a market socialist economy 256

11.4 The credit system and interest in a socialist society 257.

Notes:

Includes bibliographical references and index.

ISBN:

0312211643

033366521X

0333665228

OCLC:

37608327