Excess of Monetary Capital

jones/bhandari djones at uclink.berkeley.edu
Thu Aug 24 19:27:07 MDT 1995

I wanted to note my interest in Nello M's  and Iwao K's questions to the list.

I would recommend to Nello M the discussion of exchange rates in what I
consider to be one of the most important political economy books written
for general reader (though the book is quite difficult) in recent years:
Guglielmo Carchedi, 1991. Frontiers of Political Economy. London; Verso.

When I joined this list about a year ago, I was deep into this book and
would welcome the opportunity to return to it.

Iwao K's analysis of how debt-financed growth can "add final demands to
economy" and "add to production" but not "productive capital" is a major
theme in Paul Mattick's writings which attempt to show not only, as John
Ernst has already noted, the limits to the mixed economy but also its
eventual transformation to an actual barrier to capital accumulation.

  There was also Iwao's discussion of asset price instability and the
question of how that may react back on the real economy.  Iwao of course
related this question back to emergence of excess money as a result of
government fiscal policy as a temporary way out of accumulation crisis.

But I have one immediate request for clarification. I do not understand
what the  essential factor is that is appearing as widening of an
international trade imbalance.  Or why this essential factor takes this


> There was also seen an increase in organic
>composition of capital caused by introduction of automation.
>So the law of decline of profit rate appeared. On surface, such essential
>factor appeared as widening of international trade inbalance. It led to
>the collapse of the currency system named Brettonwoods regime.
>The present difficulties for capitalists come from here.

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