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GEORGE ARGITIS

This paper argues that Marx’s analysis of interest could form the basis for a monetary and institutional analysis of the effective demand, unemployment and macroeconomic instability problems in capitalist countries with conflicting intra-capitalist relationships. The analysis pinpoints the barriers set by money capitalists’ income on industry’s accumulation. A monetary-distributive mechanism is conceptualised as an endogenous source of demand deficiencies that limit the expansion of output and employment. This mechanism is essential to the construction of an approach to the Marxian monetary macroeconomic theory, which will be helpful for us to better understand some of the contradictions of contemporary capitalism.