Chapter Three - University of Texas at Austin
Download
Report
Transcript Chapter Three - University of Texas at Austin
Capital, Chapter Three:
Money, or the Circulation of
Commodities
Money as Power
Defetishize reading
Class context
Money as power
for
capital
for workers
Structure of Chapter
Money as Measure of Value
Money as Standard of Price
Money as Means of Circulation
Money as Store of Value (or Hoard)
Money as Means of Payment
World Money
Money as Measure of Value
Pre-sale: C - M(?) - C(?)
“Price”
is hypothetical, asked for but not paid
Use value C has been produced, but has not
found an expression of value
After-sale: C - M - C
Money
paid; Price has been realized
Amount of Money measures value of C
Money as Standard of Price
Money Form: (zB, yC, ... nN) = xAu
Price form, e.g., zB = xAu
Value is measured by quantity of gold,
ounces
Price is measured by money name of weight
of gold, e.g., $35/oz, $1.00 = 1/35oz of Au
Money names attached to coins
Contradictions
As Measure of Value & Standard of Price
The distinction means possible rupture
Price and value can differ
e.g., debasement of currency
e.g., clipped coins’ value less than nominal
value
e.g., Locke & recoinage during war
Money as Means of Circulation - 1
As facilitator of exchange
C - M - C represents circulation of commodities
C - M = 1st metamorphosis (of form)
realization
of exchange value
M - C = 2nd metamorphosis (of form)
realization
of use value
Money as Means of Circulation -2
Syllogistic mediation
C-M-C =P-U-I
C is produced for its particularity exchange
value
M is the universal equivalent & mediator
C is acquired for its individual use value in
consumption
Money as Means of Circulation -3
Prime example: LP - M - C
LP = ability to work (for capital)
M = wage
C = C(MS) = means of subsistence
All this working class view of working for
money as a means to an end:
consumption/life
Possibility of Crisis - 1
Separation of sale & purchase = possibility
of rupture in circuit
C - M can be accomplished, but
M - C might not be
Money can be hoarded
Say’s Law doesn’t hold in money economy
Refusal to spend = inadequate aggregate D
Possibility of Crisis - 2
In the case of LP - M - C
Workers can refuse to sell LP for M
e.g., refuse to leave land, strike
Workers can refuse to spend (today)
e.g., increase savings, reduce consumption
demand
Quantity Theory - 1
Classical Quantity Theory of Money
M = ∑pq/V
M = money, p = price, q = goods,
V = velocity of money (e.g., turnover/yr)
With q & V fixed, change in M produces a
change in p, i.e., p = f(M)
e.g. influx of gold from new world in 16th C
meant inflation in Europe
Quantity Theory - 2
Marx’s Interpretation
M = ∑vq/V
Behind price (p) lies value (v)
So instead of p = f(M), we have
M = f(v)
e.g., 16th C gold had lower value per unit
so, M had to increase to express ∑vq/V
Quantity Theory - 3
Marx’s interpretation with paper money
M = ∑vq/V
Paper money only represents value
Amount of value depends on ∑vq/V
Value per unit of money depends on
quantity of money
So, Marx’s interpretation rejoins Classics’
Money as Store of Value
Money “stores” value when hoarded
Hoard functions in circulation
Money stored, released
Like foreign exchange reserves today
So misers are misguided obstacles to
circulation
Money as Means of Payment
With “credit money” purchase preceeds
payment
Payment follows later
e.g., commerical credit, credit cards
Separation = new potential for crisis
e.g., debt crisis of 80s & 90s
World Money
In 19th C, int’l money was bullion/metal
In late 20th C int’l money is credit
gold
has been demonitized
although gold bugs still want it back
Marx’s discussion of credit provides basis
for analysis of International Monetary
System & IMF
--END--