Beyond Transfers in Monetary Chains of Dependency: How Exchange Rates Enforce Unequal Exchange and Labor Super-Exploitation

Abstract

Marxist dependency theory emphasizes the uneven development between core and peripheral economies, highlighting how economic dependency fosters political domination. This disparity stems from unequal exchange and intense labor exploitation, where peripheral economies compensate for value losses through super-exploitation, resulting in a heteronomous development model. Exchange rates play a vital role by legitimizing the monetary character of national currencies, reproducing the general equivalent crucial for capital accumulation. However, dependency theory lacks a cohesive framework for exchange rates. This article connects various Marxist perspectives on exchange rate determination, framing unequal exchange as a loss of potential value rather than an actual transfer. Ultimately, we examine how exchange rates dynamics lead to the super-exploitation of labor, reinforcing dependency dynamics.

JEL Classification: B51, F54, F310