From: cmgermer@UFPR.BR
Date: Tue Jun 08 2004 - 10:53:55 EDT
Thank you for your questions, Jerry. Here are the answers I can give to them: > A couple of brief questions about the last sentence above. > > 1) Why isn't credit money a form of money? The answer depends on the theory adopted. In my opinion in Marx’s theory money and credit money are different concepts that referr to different objects. If money is the ‘general’ equivalent, then there is no more than one equivalent, otherwise the equivalent would not be ‘general’. Thus, there aren’t different forms of the general equivalent or of money. But in the performance of the functions of money in the circulation, ‘instruments of circulation’ that perform those functions are produced, like f.i. the symbols of value in the case of the means of circulation function. Credit money is an instrument of circulation derived from the means of payment function, and develops into the Central Banknote and deposits along the development of the integrated banking system. Central Banknotes and deposits are therefore forms of credit money. On the other hand, money is a commodity, produced like the others by social labor. Credit money is a certificate of debt, issued and cancelled as debts are issued and cancelled. I think that in everyday parlance this distinction is not relevant, especially in the means of circulation function, where the name of the instrument of circulation is not relevant either. But it is in the theory. It is also of practical relevance for the capitalist, and for the capitalist state, because they have to build reserves of money as real value (independent of factors other than the object of value itself), which credit money isn’t. This is why the relevant capitalist states and the capitalists privately till today hold huge reserves of gold, as you can see in the IMF statistics, or rough estimates in the case of private holdings. > > b) Does the above mean that you don't think that credit money > is part of the money supply? Theoretically it isn’t, in my opinion. Striclty speaking, again according to Marx’s theory, money is supplied to the system by its physical production, and is supplied to the circulation by being released from hoards. Credit money is supplied and suppressed by the continuous issuing and cancelling of debts. comradely, Claus. > > In solidarity, Jerry >
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