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How does material production become socially§recognised in Capitalism? This is a fundamental§question for Economics, since material production§takes place privately and independently in a§worldwide system. The theory of the commodity§outlined in this book shows that the process of§social recognition of material production and the§process giving rise to money are one and the same. In§fact, they are only the material manifestation of the§realisation of work carried out privately and§independently as part of the social labour. The book§completes the characterisation of commodities as a§historical form of the social product and recovers§Marx s fundamental concept of the mercantile form of§value. As a result, it becomes evident that the§mercantile form of value is the indirect way in§commodity production to allocate the productive§powers of society, Smith s invisible hand. The book§also breaks the false immediate links between the§means of production and capital, and between money§and capital. The fallacy that the labour theory of§value disregards the inputs to production other than§labour is thus laid bare, as is the misconception§that directly identifies supply with production.