The_Function_Of_Money

The Function Of Money Discuss the functions of money in the Marx’s political economy. Could the function of means of payment explain the emergence and proliferation of the credit money in contemporary capitalism' Of these three approaches to money: The German Historical School, Neoclassical and the Marxist approach; Marxist economics could be seen to have the closest theoretical content to that of the classical political economy. This similarity is especially seen in the theory of value. Where as other economic models, such as the German historical school and neoclassicism did not agree, Marxism developed the labour theory of value in which basis Marx founded a sound theory of money and credit but criticised how these issues were treated in the classical theory. Marx identified problems of the use of value which is particular to commodities so they are quantitatively different, imperfectly divisible and heterogeneous; and value which is general and commodities are qualitatively the same, perfectly divisible and homogeneous (Political Economy of Money and Finance, p34). As commodities try to have both use value and exchange between them becomes damaged. This could be avoided if there is one commodity witch has both use value and value for the exchange of all commodities. Hence Marx said money money, value, credit, commodity, exchange, circulation, payment, marx, capitalist, seen, quantity, through, commodities, hoards, means, system, state, gold, debt, function, accumulation, therefore, fait, world, price, international, economy, commercial, being, bank, amount, however, currency, between, theory, surplus