The Mobilisation of Capitals

Makoto Itoh
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Makoto Itoh: University of Tokyo

Chapter 8 in The Basic Theory of Capitalism, 1988, pp 250-289 from Palgrave Macmillan

Abstract: Abstract Competition among capitals which forms a general rate of profit and the market prices of production across industrial spheres, through the process of fluctuating market prices, demonstrates the concretely developed forms of the law of value as the law of motion of a capitalist economy. An anarchical capitalist market economy must incessantly misallocate dead and living labour in various spheres, bringing about either an excessive or short supply of commodities. Such misallocation of labour is not generally insolvable. It is usually repeatedly readjusted in the process of the expansion of capitalist production, guided by the movement of market prices. A short supply of commodity products in relation to social demand is indicated when extra profit is obtained by some spheres by selling their products at market prices higher than the market prices of production. Then the expansion of production in such spheres is speeded up basically by reinvesting the extra in addition to the average profit. An excessive supply of commodity products would cause the reverse effects. The shortening of the selling-time of commodity products reflecting favourable market conditions would usually go along with the rise in market prices, having similar effects, and the prolongation of selling-time would have the opposite effects.1

Keywords: Central Bank; Money Market; Bank Credit; Commodity Product; Bank Capital (search for similar items in EconPapers)
Date: 1988
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-19107-9_8

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DOI: 10.1007/978-1-349-19107-9_8

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