Monetary Capital

Monetary Capital

 

money functioning as capital-value, which begets surplus value and which is used to exploit hired labor. In precapitalist formations capital existed in the form of interest-bearing capital: usurious capital and monetary-commercial capital (“money-changers”).

The accumulation of monetary capital, a necessary prerequisite of the beginning of the capitalist method of production, was one of the basic factors of the so-called primitive accumulation of capital. Under capitalist conditions monetary capital is an essential form of capital circulation, in both its initial (purchase) and final (sale) stages. Monetary capital is used in the marketplace for buying labor power (LP) and the means of production (MP) necessary for production, which in the money (M) and commodity (C) cycle gives rise to the following metamorphosis:

The movement of monetary capital occurs in the sphere of circulation and is a condition necessary to the process of reproduction of social capital. In connection with this process, the money functions also become capital functions, since the capitalist advances money in order to receive profit. At the end of the process of circulation, the magnitude of monetary capital increases by the amount of surplus value.

Monetary capital exists both as a direct form of money and as a form of fictitious capital, that is, money accumulation in banks and various titles of ownership giving the right of appropriation of surplus value in the form of money. Accumulation of monetary capital and real capital (capital functioning in the production process) do not coincide, expressing the contradiction between commodities and money, between the social nature of production and the private-capitalist character of appropriation. This contradiction breaks out in an acute form during periodic economic crises of commodity overproduction, when the surplus of real capital (commodity and production) is opposed to the shortage of monetary capital in the form of lending capital, while the phase following a crisis—depression—is marked by the decreased volume of real capital and the accumulation of great masses of monetary capital unable to find productive use.

Z. V. ATLAS

References in periodicals archive ?
The Kuwait Ports Authority is witnessing major projects as part of His Highness the Amir's vision to make Kuwait a financial and monetary capital in the region and also as part of the 2035 development plan," Sheikh Youssef Al-Abdullah told KUNA on sidelines of a reception held late Tuesday by Kuwait Ambassador to Belgium, the EU, NATO and Luxembourg, Jassem Al-Budaiwi's residence.
Sindh government within a week has expressed her anger against the Para-military force Rangers the fact which establishes KE more powerful then the security forces, exposing the bourgeoisie political principle guaranteeing the supremacy of monetary capital upon the state.
I think that having a great monetary capital of the planet staying in the UK and getting the UK be part of Europe is the finest point for all of us.
I retired to west Wales in the knowledge that my monetary capital and my PS40,000 pa income would be good for the Welsh economy.
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The agreement by the two sides specified that WISCO will make the contribution by net assets accounted 49% stake, and Huarun Medical will make the contribution by monetary capital accounted 51% stake.
In her analysis the local texts of this culture--budgets, data texts, work orders, technical reports--work as "immutable mobiles," inscribing power relations in ways that further the transformation of engineering knowledge into monetary capital.
In short, they applied their cultural and monetary capital where it would do them, as a class, the most good.
Fears of a sharp drop in bond prices related to expectations of a change in US monetary policy may have reduced monetary capital formation up to the spring of 1996, but since that time, and especially into 1997, German interest rates have declined relative to US rates and monetary capital formation has recovered modestly.
The worldwide arms trade continues to boom, and many of the world's nations - including the United States - continue to divert huge amounts of intellectual and monetary capital into military enterprises and useless military hardware.
2) In addition, Barnett (1991) proved that if we could do the forecasting needed to compute the monetary capital stock (equation 3), the result would be identical to that produced by discounting to present value the future stochastic process of the Divisia monetary aggregate.