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Credit, Debt And Distribution In The Monetary Theories Of Augusto Graziani And Michał Kalecki

Toporowski, Jan

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Authors

Jan Toporowski



Abstract

The Monetary Production Theory of Augusto Graziani provides a rich analysis of the use of credit in capitalist production, showing the endogeneity of such credit and giving new insights into the use of credit as money. The theory suggests a credit system, inflated by loans for production and investment and deflated by loan repayments, with incomes in the form of profits and wages recorded as credit transfers. In Graziani, a key part is played by workers’ saving, and this results in a problem of interest monetisation. The paper shows that this difficulty disappears once it is recognised that capitalists own financial assets and bank deposits, as Kalecki argued. With this modification, Graziani’s principles of monetary circulation are then used to examine Neo-Kaleckian theories of financialisation. The wage rate and workers’ saving, rather than the workers’ borrowing, are a more significant influence on the distribution of income between those classes, and the circulation of money among capitalists, rather than between capitalists and workers, is a more critical determinant of production and profits.

Citation

Toporowski, J. (2020). Credit, Debt And Distribution In The Monetary Theories Of Augusto Graziani And Michał Kalecki. Annals of the Fondazione Luigi Einaudi, 54(2), 311-326. https://doi.org/10.26331/1128

Journal Article Type Article
Acceptance Date Nov 5, 2020
Publication Date Dec 1, 2020
Deposit Date Nov 6, 2020
Publicly Available Date Nov 6, 2020
Journal The Annals of the Fondazione Luigi Einaudi
Print ISSN 2532-4969
Electronic ISSN 2532-7054
Peer Reviewed Peer Reviewed
Volume 54
Issue 2
Pages 311-326
DOI https://doi.org/10.26331/1128
Publisher URL https://www.annalsfondazioneluigieinaudi.it/browse/credit-debt-and-distribution-in-the-monetary-theories-of-augusto-graziani-and-michal-kalecki/

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Copyright Statement
This is the version of the article/chapter accepted for publication in The Annals of the Fondazione Luigi Einaudi, Vol 54,no. 2
https://doi.org/10.26331/1128
Accepted version downloaded from SOAS Research Online: http://eprints.soas.ac.uk/34184
Re-use is subject to the publisher’s terms and conditions





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