ABSTRACT OF PAPER
Title: Structure and problems of the ‘circuit theories’
Author: TAKENAGA Susumu
Money in motion, published 11 years ago, still remains one of the recent most important collection of papers written by researchers belonging to different non-orthodox streams of economic thoughts, post-keynesian and circulation approaches. The latter, the circulation approach, is composed of two different (though with certain similar characteristics in common) streams mainly of French and Italian origin, namely the monetary approach and circuit theory. Unlike post-keynesian approach, they became known only recently (from the end of the 20th century) outside French or Italian speaking countries, not to mention Japan. It may be interesting to compare these streams to know the particular characteristics of each of them in the historical context of economic thought during the late 20th century. The present paper aims to examine the theoretical structure of the circuit theory and certain number of problems it contains and which became and still are matters of debate among the so called ‘circuitists’. No definitive solution is yet attained to these topics. Apart from some predecessors, the circuit theory was first developed systematically by Bernard Schmitt in the 1960s and from the mid-80s by Augusto Graziani. Discussions around particular aspects of the circuit model from the mid-80s on seem to be for the most part motivated by the “renewal” of the model by the work of Graziani. We will focus in this paper on these aspects of the model which mark at the same time the differences between the model of Schmitt and that of Graziani: tentative extension of analysis into the interior structure of the sectors and their reciprocal relations, assumption of a propensity to consume inferior to the unit of the household, saving and investment by laborers, permanent monetary stock and its effects to the process of monetary circuit etc.
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