Abstract
The Cencini—Schmitt macroeconomic circuit originates with and is closed by a bank. It is cast in double-entry book-keeping terms. We offer a processual interpretation along the “mathematical institutional” lines suggested by Martin Shubik. The objective is to elaborate upon the connection between commercial banks and central banks. The central bank in the circuit approach is no more than a clearing house. We suggest, on the other hand, that it is an integral part of the process of production and accumulation in a capitalist economy.
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Correa, R. The Monetary Circuit —A “Mathematical Institutional” Interpretation. Evolut Inst Econ Rev 2, 199–212 (2006). https://doi.org/10.14441/eier.2.199
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DOI: https://doi.org/10.14441/eier.2.199