<XML><RECORDS><RECORD><REFERENCE_TYPE>3</REFERENCE_TYPE><REFNUM>8935</REFNUM><AUTHORS><AUTHOR>Cockshott,W.P.</AUTHOR><AUTHOR>Cottrell,A.</AUTHOR></AUTHORS><YEAR>2008</YEAR><TITLE>Probabilistic political economy and endogenous money</TITLE><PLACE_PUBLISHED>First Conference on Probabilistic Political Economy, July 2008, University of Kingston</PLACE_PUBLISHED><PUBLISHER>N/A</PUBLISHER><LABEL>Cockshott:2008:8935</LABEL><KEYWORDS><KEYWORD>money</KEYWORD></KEYWORDS<ABSTRACT>Since the foundational work of Farjoun and Machover important contributions to the field of probabalistic economy have been made in Yakovenko and in Wright Both of the later works assume an economy with exogenous money. In this context one naturally has conservation of money as a postulate. However it is questionable whether a capitalist economy could ever work with entirely exogenous money, and it is interesting to see to what extent probabilistic arguments are of use in understanding the evolution of the type of endogenous money system that characterises contemporary capitalism. We will first argue why, on probablistic grounds, a system with a strict conservation law on money was historically unsustainable. We then go on to examine whether phenomena like -- the formation of a rate of interest -- periodic commercial crises -- the formation of a rentier class can be understood using the sorts of arguments that Farjoun and Machover pioneered.</ABSTRACT></RECORD></RECORDS></XML>