Credit, Debt And Distribution In The Monetary Theories Of Augusto Graziani And Michał Kalecki

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Main author: Toporowski, Jan
Format: Journal Article           
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id eprints-34184
recordtype eprints
institution SOAS, University of London
collection SOAS Research Online
language English
language_search English
description The Monetary Production Theory of Augusto Graziani provides a rich analysis of the use of credit in capitalist production, showing the endogeneity of such credit and giving new insights into the use of credit as money. The theory suggests a credit system, inflated by loans for production and investment and deflated by loan repayments, with incomes in the form of profits and wages recorded as credit transfers. In Graziani, a key part is played by workers’ saving, and this results in a problem of interest monetisation. The paper shows that this difficulty disappears once it is recognised that capitalists own financial assets and bank deposits, as Kalecki argued. With this modification, Graziani’s principles of monetary circulation are then used to examine Neo-Kaleckian theories of financialisation. The wage rate and workers’ saving, rather than the workers’ borrowing, are a more significant influence on the distribution of income between those classes, and the circulation of money among capitalists, rather than between capitalists and workers, is a more critical determinant of production and profits.
format Journal Article
author Toporowski, Jan
author_facet Toporowski, Jan
authorStr Toporowski, Jan
author_letter Toporowski, Jan
title Credit, Debt And Distribution In The Monetary Theories Of Augusto Graziani And Michał Kalecki
publisher Fondazione Luigi Einaudi
publishDate 2020
url https://eprints.soas.ac.uk/34184/

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