Industrial without Financial Circulation?

The theory of the monetary circuit, as represented in the work of Augusto Graziani, appears as a ‘natural’ complement to the monetary theory of Kalecki because both share a focus on the circulation of money rather than monetary aggregates. However, the ‘circuitist’ theory differs in assuming that capitalists have no money and therefore need ‘initial finance’. Graziani has credit used as means of payment, with the credit of workers as claims on indebted capitalists. ‘Neo-Kaleckian’ financialization theory has capitalists’ credit as claims on indebted workers. Both exaggerate the importance of inter-class debt, at the expense of the intra-class debt whose circulation among capitalists is the foundation of Kalecki’s monetary macroeconomics.