60 SOCIAL SCIENTIST Another very important issue which has been studied in Part I is the review of Marx's attack on the quantity theory of money which is as valuable and relevant to our present times as it was to Marx's. It is known that the early quantity theory is based on the idea that movements of money determine movements of commodities. Marx started from the opposite angle, arguing that the movement of commodities is primarily determined outside the sphere of money, and their movements determine the movement of money. According to Marx, money is a medium through which commodity exchange takes place, a medium that transmits but mainly docs not generate spending which is exogefnously determined. In his law of circulation, Marx has considered not only commodities produced and exchanged, and the transaciions velocity of money, but also the money prices of commodities to be determined outside the circulation process. It is the quantity of circulating money, not the total stock of money, as argued strongly by Marx, that adjusts to satisfy the quantity theory. However, Marx does not consider money to be "neutral" or a "veil," or unimportant. "Money, despite the secondary nature of its importance, is not neutral and can never be completely neutralized since it puts into effect certain private decisions. Money in circulation really belongs to no one, but its very circulation is conditioned on the formation of hbards" (p 43). In Part II of the book, "Money and Capitalism," de Brun-hoff gives an exposition of how Marx integrates his theory of money into the process of capitalist economy with its different cycles: prosperity and depression. The integration is completed by the analysis of the "modalities of capitalist financing." Marx, of course, distinguishes the "system of credit" formed by the specific mechanisms of finance from the ^monetary system." His method of analysis is based on his theory of value. Following Marx's analysis, Se Brunhoff outlines Marx's complex and incomplete discussion of credit and interest which seems to be very interesting even in modern times. According to Marx, interest is not the price of capital, nor does it express the social security of capital. It is a simple quantitative division of total profit without any power of determining the rate of profit or the rate of investment. "The division of the average profit (determined elsewhere) into interest and entrepreneurial profit then depends only on the conditions of supply and demand on the market for monetary resources; it is thus competition, or the balance of force between lenders and borrowers, which determines