ABSTRACT

For several decades following the end of the Second World War the theory of money remained a relatively neglected part of Marxist economics, particularly within Anglo-Saxon Marxism which has gradually come to play a leading role in Marxist theory. This development reflects the transformation of capitalism during the last four decades: money and finance have assumed an extraordinary place in the operations of both economy and society since the 1970s. Money is prevalent in capitalist society, but it also is an ancient economic form frequently encountered in non-capitalist societies. Money, or a commodity that everyone would find acceptable, would increase the efficiency of transacting, and thus commodity owners would benefit if they carried some money when they went to market. The Neoclassical School treats capitalism as a collection of markets. Credit money is the dominant form of money in advanced capitalism taking primarily the form of promises to pay by banks.