Book contents
- Frontmatter
- Contents
- General Introduction
- Editorial Foreword
- Author's Preface
- Special Prefaces to German and Japanese editions
- BOOK I THE NATURE OF MONEY
- BOOK II THE VALUE OF MONEY
- BOOK III THE FUNDAMENTAL EQUATIONS
- BOOK IV THE DYNAMICS OF THE PRICE LEVEL
- 15 THE INDUSTRIAL CIRCULATION AND THE FINANCIAL CIRCULATION
- 16 A CLASSIFICATION OF THE CAUSES OF A DISEQUILIBRIUM OF PURCHASING POWER
- 17 CHANGES DUE TO MONETARY FACTORS
- 18 CHANGES DUE TO INVESTMENT FACTORS
- 19 SOME SPECIAL ASPECTS OF THE CREDIT CYCLE
- 20 AN EXERCISE IN THE PURE THEORY OF THE CREDIT CYCLE
- 21 CHANGES DUE TO INTERNATIONAL DISEQUILIBRIUM
- Appendix 1 PRINTING ERRORS IN THE FIRST EDITION
- Appendix 2 DEFINITION OF THE UNITS EMPLOYED
- Appendix 3 COMPARATIVE INDEX TO FIRST EDITION AND NEW SETTING OF VOLUME I
15 - THE INDUSTRIAL CIRCULATION AND THE FINANCIAL CIRCULATION
from BOOK IV - THE DYNAMICS OF THE PRICE LEVEL
Published online by Cambridge University Press: 05 November 2012
- Frontmatter
- Contents
- General Introduction
- Editorial Foreword
- Author's Preface
- Special Prefaces to German and Japanese editions
- BOOK I THE NATURE OF MONEY
- BOOK II THE VALUE OF MONEY
- BOOK III THE FUNDAMENTAL EQUATIONS
- BOOK IV THE DYNAMICS OF THE PRICE LEVEL
- 15 THE INDUSTRIAL CIRCULATION AND THE FINANCIAL CIRCULATION
- 16 A CLASSIFICATION OF THE CAUSES OF A DISEQUILIBRIUM OF PURCHASING POWER
- 17 CHANGES DUE TO MONETARY FACTORS
- 18 CHANGES DUE TO INVESTMENT FACTORS
- 19 SOME SPECIAL ASPECTS OF THE CREDIT CYCLE
- 20 AN EXERCISE IN THE PURE THEORY OF THE CREDIT CYCLE
- 21 CHANGES DUE TO INTERNATIONAL DISEQUILIBRIUM
- Appendix 1 PRINTING ERRORS IN THE FIRST EDITION
- Appendix 2 DEFINITION OF THE UNITS EMPLOYED
- Appendix 3 COMPARATIVE INDEX TO FIRST EDITION AND NEW SETTING OF VOLUME I
Summary
INDUSTRY AND FINANCE DISTINGUISHED AND DEFINED
We must now devote ourselves to the analysis of the factors which tend to bring about changes in the value of money and to their mode of operation.
For this purpose it is necessary to make yet a further classification cutting, to a certain extent, across our division of the total quantity of money (in chapter 3) into the income deposits, the business deposits and the savings deposits—namely a division between the deposits used for the purposes of industry, which we shall call the industrial circulation, and those used for the purposes of finance, which we shall call the financial circulation.
By industry we mean the business of maintaining the normal process of current output, distribution and exchange and paying the factors of production their incomes for the various duties which they perform from the first beginning of production to the final satisfaction of the consumer. By finance, on the other hand, we mean the business of holding and exchanging existing titles to wealth (other than exchanges resulting from the specialisation of industry), including stock exchange and money market transactions, speculation and the process of conveying current savings and profits into the hands of entrepreneurs.
Each of these two branches of business utilises a certain part of the total stock of money. Broadly speaking, industry requires the use of the income deposits and of a part of the business deposits, which we will call business deposits A; whilst finance requires the use of the savings deposits and of the remainder of the business deposits, which we will call business deposits B.
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- The Collected Writings of John Maynard Keynes , pp. 217 - 230Publisher: Royal Economic SocietyPrint publication year: 1978