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

From: Gerald_A_Levy@MSN.COM
Date: Tue May 03 2005 - 07:28:58 EDT


> In relation to the question of the need for more money in simple
> reproduction and expanded reproduction.
> There seems to be implicitely in Marx´s analysis (Chapter XVII Circulation
> of surplus value, vol. II of Capital) some sort of competition between
> gold production and credit system. In so far as the credit system raises
> "the functional capacity of the quantity of money really functioning" it
> diminishes the need for metallic money.
> The question is then not one of  "downgrading the theoretical importance
> of money" but rather to investigate how the credit system downgraded the
> importance of gold within expanded reproduction.
> I would like to understand better the relationship between credit system
> and gold.

Hi Paolo:

Yes, (answering the question more concretely re where the extra money
comes from at the end of M - C - M' ), it's not a simple question of the
quantity of gold (even) within the context of a gold monetary standard:
there
was, after all, paper currency at the same time.  But, doesn't this (to
repeat a
point I made earlier in this thread) point towards the need to understand
the
role of the *state* in this process?

btw, have you asked Claus these same questions?  Doesn't he have
an office very near you?

In solidarity, Jerry


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