Credit system and crisis in Marx: the industrial cycle and its phases

Abstract

The article presents Marx’s theory of the industrial cycle, making a synthesis and a systematization of his approach on this theme, which is fragmented throughout several sections of Section 5 of Volume III of Capital. Marx’s theory of industrial cycles explains why and how the credit system periodically drives capitalist production to endogenous crises of overproduction and financial panic. The article presents the basic theoretical elements needed to understand the credit system in Marx’s approach, to later systematize his theory, characterizing each phase of the cycle and indicating the causes of the movements observed from the credit dynamics, which directly affects capitalist reproduction.

Keywords:
Marx, Karl, 1818-1883, Credit system, Crisis; Industrial cycles