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The Emergence of Profit and Interest in the Monetary Circuit

22 Pages Posted: 18 Dec 2011 Last revised: 22 Apr 2015

Egmont Kakarot-Handtke

University of Stuttgart - Institute of Economics and Law

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Date Written: December 17, 2011

Abstract

Efficient progress of the monetary theory of production (MTP) is hampered by an unsatisfactory account of how profit and interest emerge in the monetary circuit. As matter of fact this question puzzled already the Classics. It seems evident that it cannot be answered by applying the usual tools. The purpose of the present paper is to overcome the obstacle. This is done by setting the circulation approach on general structural axiomatic foundations.

Keywords: new framework of concepts, structure-centric, axiom set, monetary circuit, quantity of money, transaction money, profit, distributed profit, rate of interest, profit ratio equalization, profit and interest puzzle

JEL Classification: B41, B59, E19, E40

Suggested Citation

Kakarot-Handtke, Egmont, The Emergence of Profit and Interest in the Monetary Circuit (December 17, 2011). Available at SSRN: https://ssrn.com/abstract=1973952 or http://dx.doi.org/10.2139/ssrn.1973952

Egmont Kakarot-Handtke (Contact Author)

University of Stuttgart - Institute of Economics and Law ( email )

Keplerstrasse 17
Stuttgart
Germany

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