Money and Capitalism: The General Theory of the Circuit

Abstract

The purpose of this article is to present the importance of banks in the creation of money to satisfy the liquidity of entrepreneurs. The understanding between the Coercive Mode of Production and the Monetary Mode of Production, as well as the properties of money. The relationship between the State and the Entrepreneur are key in the development of capitalism. By rationing employment, they can meet their profit target, which explains why the interest rate has no effect on investment. What is described as “disintermediation” is, in truth, a growing intermediation, a lengthening of the monetary structure.