Re: [OPE-L] Where does the money comer from

From: glevy@PRATT.EDU
Date: Wed Apr 27 2005 - 13:20:53 EDT

> But why must an initial explanation of the
> production of surplus-value necessarily include an account of
> mechanisms that expand the money supply?

Hi Ian:

I think Paul C's point is that it is already implied in the
formula M - C - M'.  In a sense, I think he is right.  I.e.
in the formula M - C - M', and indeed in the theory of the
money-form, there is an unexplored and necessary
presupposition -- namely, the role of the state in (co-)
determining the quantity of money in circulation.  Paul C's
way of addressing this issue is to suggest a state theory
of money.  Another way of theorizing the issue is to
recognize that a more concrete level of abstraction than
that examined in _Capital_ the role of the state in the
determination of the money supply has to be recognized
and systematically explained. In other words,  it's Book 4
stuff.  But, before you can get to Book 4, don't you have to
examine the subject of classes (i.e. the topics of Books 2
and 3)?

In solidarity, Jerry

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