Theories of Value and the Monetary Theory of Production

L. Randall Wray

Macroeconomics from University Library of Munich, Germany

Abstract: This paper extends earlier work (Wray 1991; see also Wray 1992b) that argued that liquidity preference theory should be interpreted as a theory of value. Here I will argue that two theories of value are needed for analysis of a monetary production economy: the labor theory of value and the liquidity preference theory of value. Both Keynes and Marx were trying to develop a monetary theory of production; Marx, of course, adopted a labor theory of value in his analysis, and it was previously argued that Keynes adopted a liquidity preference theory in his. A monetary theory of production should adopt both, however, and I will argue that Keynes seems to have recognized this. Further, Keynes did adopt labor hours as the measure of value and said he agreed that labor produces all value. I admit it is still a leap to claim that Keynes accepted both theories of value. Instead, I argue he should have adopted both and will show that this is consistent with the purposes of the General Theory.

JEL-codes: E (search for similar items in EconPapers)
Pages: 35 pages
Date: 1999-02-18
Note: Type of Document - Acrobat PDF; prepared on IBM PC; to print on PostScript; pages: 35; figures: included
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Theories of Value and the Monetary Theory of Production (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpma:9902008

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