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Open Discussion Papers in Economics, The Open University >
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http://hdl.handle.net/10419/65700
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| Title: | | Classical macrodynamics and the labor theory of value  |
| Authors: | | Wright, Ian |
| Issue Date: | | 2011 |
| Series/Report no.: | | Open Discussion Papers in Economics, The Open University 76 |
| Abstract: | | This paper outlines a multisector dynamic model of the convergence of market prices to natural prices in conditions of fixed technology and composition of demand. Prices and quantities adjust in real-time in response to excess supplies and differential profit-rates. Finance capitalists earn interest income by supplying money-capital to fund production. Industrial capitalists, as the owners of firms, are liable for profits and losses. Market prices stabilize to profit-equalizing prices of production proportional to the total coexisting labor required to reproduce commodities. This result resolves the classical problem of the incommensurability between money and labor-value accounts in conditions of profits on stock, i.e. Marx's transformation problem. |
| Document Type: | | Working Paper |
| Appears in Collections: | | Open Discussion Papers in Economics, The Open University
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