Circulating Capital
Circulating
capital is a term used by classical economists such as
David Ricardo
and others such as
Karl Marx
. It refers to a kind of
physical capital
, i.e., short-lived items that are used in production and used up in the process of creating other goods or services. It includes
raw materials
,
intermediate goods
, and
inventories
(working capital). It is contrasted to
fixed capital
.
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