Marx's Theory of Money and Monetary Production Economy

Most classical and neoclassical economists have treated money as being neutral in the sense that it has no e#ect on the motives and decisions of economic agents. In the real world, however, money a#ects the behaviors of agents through many channels. An alternative framework is required to analyze the monetary production economy characterized by the ‘money-commodity-more money’ circuit aimed at realizing monetary profits. This paper examines Marx’s theory of money in view of Keynes’s taxonomy of economic systems to show that a specific use-value of money is the key to understanding the monetary production economy.