Money, Credit and financial capital

Abstract

The contributions to money and credit theory and their relationship with banks are present a hundred years ago in Finance Capital. Such contributions are of utmost importance to understand the crisis of the capitalist system. Hilferding’s seminal work represents the embryo of the theory of the monetary circuit. But also, the confrontation between Marxists and monetarists a hundred years ago. They express the economic debate surrounding the development and expansion of capitalism from the end of the XIX century and beginning of the XX century. But beyond this, it is the photograph of the transition from mercantile capitalism to finance capitalism, in which banks and industry unite in large conglomerates to expand and appropriate territories, as well as renewable and non-renewable natural resources in the search for profits. Without a doubt, the only interest behind the fusions and mega fusions in periods of crisis is the concentration and centralization among the large business formations with a sole predetermined objective, survival and profit. Of course, without the participation of the State, it would not be possible to carry out the process of conglomerate strengthening, shaking the foundations of social well being. This essay tries to underline Hilferding’s thinking in the debate over money and credit, given the importance of these subjects in his work. The principle categories of Hilferdings work are taken into consideration through several statements; second, the importance of money and credit money as a social relation; third, credit money as opposed to the chartalists and monetarists; lastly, the contributions to Marxist and Post Keynesian thinking.