Marx's Theory Of Money

Marx's Theory Of Money <b>The Theory of Money and the Theory of Value</b> The most important point to emerge from Marx’s theory of money is the idea that money is a form of value. The difficulty with this idea is that we are more familiar with money itself than with value in other forms. But value does appear in forms other than money. For example, the balance sheet of a capitalist firm …

…during the Napoleonic wars. Ricardo and later quantity theorists used this phenomenon of depreciation as a strong argument for their thesis that the value of money depends on its quantity. For these writers the depreciation of paper money was just a particular example of the tendency for any form of money to depreciate when its quantity becomes larger relative to the needs of circulation. Marx’s discussion of this question is very clear and convincing.