Marx introduces the concept of interest bearing capital and his M-M' formula variation of the M-C-M' formula here in Volume I:
Part II: The Transformation of Money into Capital Chapter Four: The General Formula for Capital http://www.marxists.org/archive/marx/works/1867-c1/ch04.htm Value therefore now becomes value in process, money in process, and, as such, capital. It comes out of circulation, enters into it again, preserves and multiplies itself within its circuit, comes back out of it with expanded bulk, and begins the same round ever afresh. [14] M-M', money which begets money, such is the description of Capital from the mouths of its first interpreters, the Mercantilists. Buying in order to sell, or, more accurately, buying in order to sell dearer, M-C-M', appears certainly to be a form peculiar to one kind of capital alone, namely, merchants’ capital. But industrial capital too is money, that is changed into commodities, and by the sale of these commodities, is re-converted into more money. The events that take place outside the sphere of circulation, in the interval between the buying and selling, do not affect the form of this movement. Lastly, in the case of interest-bearing capital, the circulation M-C-M' appears abridged. We have its result without the intermediate stage, in the form M-M', “en style lapidaire” so to say, money that is worth more money, value that is greater than itself. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
