A Macroeconomic Analysis of Transnational Corporations in a Monetary Theory of Production

Abstract

This paper aims to put forward an original conceptual framework and a renewed perspective on monetary analysis applied to transnational corporations based on some of the views of Bernard Schmitt developed over the last forty years. After reviewing the terminological principles of the theory of money emissions, we show that Bernard Schmitt's theoretical insights have enabled the successful integration of money and output at the conceptual level along the lines of a Keynesian monetary theory of production. We then examine the issue of the definition of the transnational corporation and its exponential rise in the world economy with regard to the globalisation process. Finally, the inclusion of transnational corporations in the theory of money emissions allows us to redefine transnational production as an additional conceptual level in monetary macroeconomics, with far-reaching implications as far as the monetisation of transnational production and the subsequent reform of international payments are concerned.

Keywords: transnational corporation, theory of money emissions, monetary macroeconomics, globalisation, international payment

JEL Classification: E00, E19, E40, E50, E59