Abstract

Not withstanding his great influence on progressive thought and practice in other areas, Marx’s monetary theory has had relatively little impact. In the countless books in the Marxian tradition on economic crises finance and money have minor roles. The lack of influence of Marx’s theory of money is largely explained by a belief that his views were either wrong or an anachronism because of their emphasis on commodity money. However, commodity money is an essential element in the labor theory of value. When placed in the context of the circulation of capital, commodity money is a powerful tool to explain the role of money itself and the nature of financial capital.
Introduction

Not withstanding his great influence on progressive thought and practice in other areas, Marx’s monetary theory has had relatively little impact. In the countless books in the Marxian tradition on economic crises finance and money have minor roles compared to discussions of profitability, underconsumption and «disproportionality». In part this results from a preoccupation with the debate over whether there is a tendency for profit rates to fall, over what time period and under what conditions. Deeper than this is a suspicion among Marxists that money and finance involve superficial and derivative phenomena that in themselves are of limited theoretical power.

Why is there finance? Insights from Marx’s monetary theory (Work in progress)