The Emergence of Profit and Interest in the Monetary Circuit

World Economic Review 2: 106-118, 2013

13 Pages Posted: 14 Mar 2013

See all articles by Egmont Kakarot-Handtke

Egmont Kakarot-Handtke

University of Stuttgart - Institute of Economics and Law

Multiple version iconThere are 2 versions of this paper

Date Written: 2013

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 present paper’s purpose is to overcome the deadlock. 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

JEL Classification: B41, B59, E19, E40

Suggested Citation

Kakarot-Handtke, Egmont, The Emergence of Profit and Interest in the Monetary Circuit (2013). World Economic Review 2: 106-118, 2013. Available at SSRN: https://ssrn.com/abstract=2232997

Egmont Kakarot-Handtke (Contact Author)

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

Keplerstrasse 17
Stuttgart
Germany

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