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Self-replacing prices with credit and debt

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  • Venkatachalam, Ragupathy
  • Zambelli, Stefano

Abstract

Sraffa advanced his critique of economic theory (Sraffa, 1960) based on the notion of a production system that replicates itself. Prices associated with exchanges in such a system ought to be such that producers and workers would have the necessary purchasing power. The original Sraffian schemes do not include the possibility for exchanges to take place through deferred means of payments. We generalise this system by introducing the possibility of deferred means of payments. We characterise the domain of self-replacing prices in the presence of credit, debt and non-uniform rate of profits. We provide a constructive procedure to compute the relevant self-replacing prices.

Suggested Citation

  • Venkatachalam, Ragupathy & Zambelli, Stefano, 2022. "Self-replacing prices with credit and debt," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 451-466.
    • Handle: RePEc:eee:streco:v:60:y:2022:i:c:p:451-466
    DOI: 10.1016/j.strueco.2021.11.002
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    References listed on IDEAS

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    1. Stefano Zambelli, 2018. "The aggregate production function is NOT neoclassical [Econometric tools for analyzing market outcomes]," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(2), pages 383-426.
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    3. Giorgio Gilibert, 2003. "The equations unveiled: Sraffa's price equations in the making," Contributions to Political Economy, Oxford University Press, vol. 22(1), pages 27-40, November.
    4. Ragupathy Venkatachalam & Stefano Zambelli, 2021. "Sraffa, Money and Distribution," Palgrave Studies in the History of Economic Thought, in: Ajit Sinha (ed.), A Reflection on Sraffa’s Revolution in Economic Theory, chapter 0, pages 455-497, Palgrave Macmillan.
    5. Giorgio Gilibert, 2006. "The Man From The Moon: Sraffa'S Upside-Down Approach To The Theory Of Value," Contributions to Political Economy, Oxford University Press, vol. 25(1), pages 35-48, August.
    6. Giuseppe Ciccarone, 1998. "Prices and Distribution in a Sraffian Credit Economy," Review of Political Economy, Taylor & Francis Journals, vol. 10(4), pages 399-413.
    7. Panico, Carlo, 1988. "Sraffa on Money and Banking," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 12(1), pages 7-28, March.
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