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Marx stands for 'classical' and 'Keynes' is represented by the stock-flow-consistent framework of Godley–Cripps–Lavoie. Agriculture proxies for basics in the classical departmental schema and does not dissolve into manufacturing. We establish the primacy of commercial/central bank money in the production and circulation of basics. Financial institutions mediate between savers and investors in the production of capital goods. Finally, corporations can issue shares to underwrite their investment plans. Financialisation is captured by share buybacks. JEL Codes: B52, E12

We engage with David Andolfatto (2018) on the theme. The two approaches are alleged to have converged in regarding banks as creators of money in the process of initiating lending. We synthesise insights from different factions of the French camp of political economy to make the case that heterodoxy is richer than this claim. Money as an asset-liability is the wage fund in the "first moment" of the monetary circuit. The accumulation of capital is the "second moment" in the sequence, recorded in a separate account at the bank or supported by a financial institution. The "third moment" is the closing of the accounts of demands and supplies generated by the first two moments. Régulation Theory is a related internally-consistent conceptual structure which tracks modes of production as they evolve in history. We dwell on the constructive aspects of the programme as scholars stitch together elements of the present and develop an apparatus to grapple with the emerging new regime of production and distribution. The private sector and state are joined and the bank-central bank is a continuum. Finally, the class structure in the heterodox approach goes deeper than agent heterogeneity.

Our treatment of the theme is inspired by the formulation of Hiroshi Onishi. Professor Onishi establishes the labor theory of value by deriving a proportionality between labor power and output. We engage with the Professor's marginalist treatment and proceed to the dialectical approach to Marx's theory of value. Accordingly, money is an integral part of the subject.

PurposeThe purpose of this paper is to make a case for an international clearing house.Design/methodology/approachThe systems postulate is used: the whole is greater than the sum of the parts. Specifically, the 2007 Godley‐Lavoie model is exploited.FindingsDomestic banking arrangements are institutionally fragile; they import stability from their central banks. In like manner, relations between central banks must be conducted under a common metric, a world money.Originality/valueThe paper shows that a technical argument for a multilateral clearing house will not be found. The author teases "implicit dynamics" (Stephen Turnovsky) out of national income identities.

We appraise the canonical RobertsonKeynes discussion from the structural axis of exogeneity/endogeneity of the interest rate. The interest rate is shown to be an exogenous variable. It is only with Keynes' contribution of liquidity preference and, specifically, the introduction of the liquidity preference of banks that no more than the possibility of endogenising the interest rate arises. Given the tenuousness of the resolution, we pose the ethical question: should the rate of interest be endogenised? On the other hand, Keynes' theorem that the rate of interest is a monetary variable is validated. Both money and the rate of interest are codetermined in a capitalist economy.

We propose a novel interpretation of Piero Sraffa's (1960) Standard commodity: The solution price vector of his subsistence production system is invariant to an equivalence transformation of the constants of the problem only in the case of the Standard system.

Kaleçki's microeconomics is recast in a strategic framework. The transformation is made in two steps. First, the relationship between capitalist and worker is modeled as a cooperative game. It is shown that the outcome is 'more favorable' to the capitalist than any other point on the payoff frontier. The game is then converted into a perfectly antagonistic game. The saddle-point is shown to be the outcome of a capitalist maximization problem

We reflect on the issues raised by the recent faceoff between the Reserve Bank of India (RBI) and the Indian government over the short-term interest rate. Our conclusion is that the policy space must be enlarged and the set of outcomes specified in order for meaningful dialogue to be conducted between the two entities.