The Tendency of the Non-Bank Financial Sector to Rise

A Materialist Account of the Growth of Market-Based Finance

Bibliographic Data

ID21549378
AuthorsBruno Höfig (0000-0002-5937-1522, UNICAMP, Campinas, Brazil), Leonardo Paes Müller (UFABC, Santo Andre, Brazil), Iderley Colombini (0000-0001-6501-5842, UFRJ, Rio de Janeiro, Brazil, corresponding author)
Year2024
Volume56
Issue3
Pages355-379
Publication date2024-09-01
Open AccessYes
TypeARTICLE
VenueReview of Radical Political Economics (JOURNAL)
Journal identifiersISSN: 0486-6134 • E-ISSN: 1552-8502
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/04866134241239694
OpenAlexW4394923999
LanguageEN
References cited12

This article introduces the distinction between money-as-money dealing capital (MMDC) and money-as-capital dealing capital (MCDC), laying the foundations for new developments in the field of Marxian political economy. First, it explains why banks, which manage the circulation of money-as-money, are able to issue instruments that perform monetary functions, and also why non-bank financial intermediaries, which manage the circulation of money-as-capital, tend to become increasingly important as the capitalist mode of production evolves. The distinction between MMDC and MCDC also allows for a more thorough understanding of the nature of Marx’s category of interest-bearing capital (IBC), explaining when and why a capital’s net income takes the form of profit and interest, unveiling the mechanisms that produce the (socially valid) illusion that every capital bears interest. JEL Classification: B14, B26, E11, E43, E44

Business · Economics · Financial market · Financial sector · Financial system · Materialism · Monetary economics · Banking stability, regulation, efficiency · Economic Theory and Policy · Housing, Finance, and Neoliberalism · Philosophy · Finance

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Open DOIOpen Access