A Political Economic Research on Financial Support for Employment: An Analysis of Distinguishing Currency from Currency Capital

How finance supports high-quality and sufficient employment is an important theoretical and practical issue that must be addressed in the new era and the new journey. There is a common defect in the traditional theoretical paradigm, considering the role of that is, to find and explain the connection between finance and employment without considering the role of “capital”. Based on Marx’s theory of finance and employment, this paper reviews the operation mechanism of modern financial system and the financial policy from the perspective of distinguishing currency and currency capital, and then constructs the conduction mechanism of financial policy to employment. The analysis shows that the key of financial support is to optimize the accumulation of productive capital, to regulate the process of labor reproduction and balance the social power in the accumulation. The financial policy to deal with the short-term fluctuation of employment should identify and solve the problem of currency shortage, currency capital shortage, or excessive accumulation of claims, so as to smooth the productive capital accumulation and labor reproduction. To ensure long-term employment in stability, we should balance the social power by supervision, promoting financial institutions to transfer profits reasonably, and guiding currency capital to participate in the construction of general production conditions.