 Marx on the Natural Rate of Interest: Did Marx Hold a Monetary Theory of Income Distribution?Henk W. Plasmeijer Chapter 14 in Marxian Economics: A Reappraisal, 1998, pp 233-252 from Palgrave Macmillan Abstract: Abstract This chapter bears upon the question of whether the monetary theory of income distribution — as by suggested Sraffa in Productions of Commodities by Means of Commodities — must be considered equally alien to Marx’s system as it was to classical political economy. Sraffa, who was clearly inspired by the works of the classical economists and Marx, remarked that his own system leaves open the possibility that the money rate of interest determines the rate of profit: The rate of profit, as a ratio, has a significance which is independent of any prices, and can well be ‘given’ before the prices are fixed. It is accordingly susceptible of being determined from outside the system of production, in particular by the level of the money rates of interest (Sraffa, 1960, p. 33). It is well known that this idea, upon which Sraffa did not elaborate, implies a radical reversal of the causality in the theory of income distribution that is found in the works of Ricardo and Thornton. Keywords: Income Distribution; Real Wage; Money Supply; Natural Rate; Money Market (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-26118-5_14 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-26118-5_14 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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