Towards a Non-Conventional Circuit Approach: Credit, Microcredit and Property Rights

  • Lilia Costabile


In the circuit approach, as developed by Augusto Graziani (1980, 1988, 1996, 2004), credit plays a fundamental role, as firms open up the monetary circuit by buying the services of labour, in exchange for the money which they receive as credit from the banking system. Graziani’s approach assumes that the banking sector adopts conventional principles, thus ensuring that some agents have privileged access to credit, while others undergo severe ‘credit rationing’.


Bargaining Power Real Wage Banking Sector Capability Approach Relative Deprivation 
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© Lilia Costabile 2005

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  • Lilia Costabile

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