Money, credit and finance: National, regional and global dimensions

Abstract

Several schools of thought contribute to this heterodox view of money, including neo-Marxian, Schumpeterian, institutional and post-Keynesian political economy. Neo-Marxian contributions centre on the circuit of money capital, fictitious capital and the break-up of the surplus value into profit, interest and rent. Schumpeterian perspectives focus on the role of credit-money in financing innovation or variously being used for general accumulation or speculation. Institutional themes include the financial instability hypothesis and social structures of accumulation. And post Keynesian approaches recognise the role of uncertainty in complex capital investments plus the role of endogenous finance and taxes-drive money. These approaches complement each other while they all centre on the core contradiction of industry versus finance and the need for a dynamic, circuitous vision of finance capitalism (Lavoie 1992).