Money, income, and profit: lessons from the monetary theory of production

In this paper we analyze Augusto Graziani’s numerous contributions to the monetary theory of production, which he developed from a theoretical but also a policy-oriented perspective. We focus on the rejection of the neoclassical dichotomy, the causal relation between production and money creation, a...

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Bibliographic Details
Authors: Carrera, Andrea, Rossi, Sergio
Format: article
Publication Date:2015
Country:España
Institution:Universidad Complutense de Madrid (UCM)
Repository:Docta Complutense
Language:English
OAI Identifier:oai:docta.ucm.es:20.500.14352/35066
Online Access:https://hdl.handle.net/20.500.14352/35066
Access Level:Open access
Keyword:E12
E22
E23
Keynesian theories
Theories of the monetary circuit
Investment.
Dinero
Teorías económicas
5304.06 Dinero y Operaciones Bancarias
5307 Teoría Económica
Description
Summary:In this paper we analyze Augusto Graziani’s numerous contributions to the monetary theory of production, which he developed from a theoretical but also a policy-oriented perspective. We focus on the rejection of the neoclassical dichotomy, the causal relation between production and money creation, and the definition of macroeconomic saving. These three dimensions of Graziani’s work can be identified in the framework of the monetary circuit, in the tradition of classical and Marxian economic thought. The outcome of Graziani’s investigations sheds light on the working of a monetary economy of production from the issuance of bank money to the distribution of income and capital accumulation.