Falling Rate of Profit and Overaccumulation in Marx and Keynes
The question of the long-run prospects of profitability and its association with the stage of capital accumulation have occupied central importance in the history of economic thought. This paper focuses on Marx and Keynes and argues that Marx’s analysis, despite its incomplete nature, is logically consistent in both explaining the falling tendency of the rate of profit as well as the precise mechanism that leads the economy to its crisis stage. Keynes’s analysis, although sketchy, has more in common with Marx and Smith than with Ricardo and neoclassical economics. Furthermore, Keynes’s views on effective demand and the way in which it affects profitability and capital accumulation might be gainfully used for the formulation of a more advanced theory to explain and at the same time direct, within strictly defined limits, the dynamics of capitalist economies.
|Date of creation:||15 Oct 2005|
|Date of revision:|
|Publication status:||Published in Political Economy Quarterly 3.43(2006): pp. 65-75|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barnett, Vincent, 2001. "Tugan-Baranovsky as a Pioneer of Trade Cycle Analysis," Journal of the History of Economic Thought, Cambridge University Press, vol. 23(04), pages 443-466, December.
- Dimand, R.W., 1994.
"Irving Fisher, J.M. Keynes and the Transition to Modern Macroeconomics,"
1994-19, Brock University, Department of Economics.
- Robert W. Dimand, 1995. "Irving Fisher, J. M. Keynes, and the Transition to Modern Macroeconomics," History of Political Economy, Duke University Press, vol. 27(5), pages 247-266, Supplemen.
- Glyn, A. & Hughes, A. & Lipietz, A. & Singh, A., 1988. "The Rise And Fall Of The Golden Age," Cambridge Working Papers in Economics 884, Faculty of Economics, University of Cambridge.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:35980. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.