Capital Theory and Inflation an Heterodox Approach

This Paper Is Aimed At Making the Linkage Between on One Hand Fisher Macroeconomic Equation and the Circuit of Capital And, on the Other Hand, the Feed Back Effect of a Disequilibrium in the Circuit to the Price, Interest Rate and Exchange Rate Varaibles. the Paper Is Divided Into Five Parts. in the First Part, a Link Between the Price Level and the Exchange Rate in the Quantitative Equation Is Established. by a Reversal of Causality, a First Formulation of the Qualitative Theory of Money Is Derived From the Circuit of Value Obtained From the Fisher Equation. the Second Part Is Exclusively Devoted to the Construction of a Four Equation Macrodynamic Model of the Circuit of Capital with Credit Money Or Finance. in the Third Part We Examine Some Specific Problems Related to the Measurement of a Disequilibrium Variable in the Circuit, Namely the Value of a Crisis Parameter. in the Fourth Part, the Markup Approach to Inflation Is Linked to the Four Equation Model of the Circuit of Capital. Finally, the Last Part Is a Mathematical Appendix Showing the Relevance of Distributed Lag Functions in the Various Phases of the Circuit of Capital.