[OPE-L:2828] Re: Re: what a Marxist may learn from Keynes?

From: Allin Cottrell (cottrell@ricardo.ecn.wfu.edu)
Date: Wed Apr 12 2000 - 19:01:12 EDT

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I'm tempted to second some of Riccardo's points.

On Wed, 12 Apr 2000, Gerald Levy wrote:

> What specific concepts in Keynes related to the category of
> finance have not been appreciated by Marxists (or
> anticipated by Marx)?

The idea that with a non-commodity money, the financing of
investment need not "wait" for the amassing of funds via saving
out of income, but can logically precede the saving that
necessarily matches investment via the GDP accounting

> > (ii) the notion of 'liquidity preference';
> Perhaps. Explain further.

The idea that the interest rate is not merely a reflection of
the rate of profit, but can be driven independently by the
actions of speculators (or by central bank policy), in which
case the rate of profit may become the dog that is wagged by the
interest-rate tail.

> > (iv) the priority of investment over saving;
> Or do you mean consumption over saving since investment
> demand is viewed as a derived demand in Keynesian theory,
> isn't it?

No fair. Ultimately, says Keynes (echoing Smith), investment
demand is derived from expectation of future consumption demand,
but in the current period investment is in the driving seat.

> I find it curious that you didn't mention the multiplier or the
> accelerator.

The accelerator is Harrod et al., not Keynes.

Allin Cottrell.

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