The monetary aspects of the capitalist process in the Marxian system: an investigation from the point of view of the theory of the monetary circuit

The chapter discusses the monetary aspects in the Marxian system. It starts by defining in general terms the features of a true monetary economy. Then it discusses show Marx framed the theory of money, first as a universal equivalent, then as finance. Some difficulties and contraddictions are shown, and the inner link between the theory of money as a commodity and the abstract-labour theory of value is stressed. A reconstruction is proposed, where the abstract-labour theory of value is integrated within a circuit theory of money, with the supply of money being endogenous, non-commodity, with a special referente to bank finance to production.