Introduction

This book focuses on Marx’s theory of price. Its aim is to provide an interpretation of this theory which is consistent with the logic, if not the written word, of Marx’s analysis in Capital, his most developed work in political economy, or ‘economics’, as the subject matter of much of this work is now referred to. The motivation for doing so is twofold. Firstly, to contribute to the recent revival in interest in Marx’s economic analysis of capitalism, noting in passing that any theory purporting to explain the dynamics of the capitalist system, as Marx’s does, requires most fundamentally a theory of price. The theory of price, it needs emphasising, both reflects and conditions general theories of the economic system. Secondly, to shift the focus of economic debate back to its foundations, there being nothing more foundational than the theory of price. Presently, the focus of economic debate is the alleged causes of, and required policy responses to, the recent severe crisis of the global capitalist system. What is apparent is that much of this debate is poorly informed, if at all, by any coherent theoretical analysis, causing a growing number of economists to argue for a reconsideration of the foundations.1 It is in this context that the present work can be argued to have a particular significance.