[OPE-L:3835] Re: Re: Re: Rational expectations Marxism

From: Ajit Sinha (ajitsinha@lbsnaa.ernet.in)
Date: Mon Sep 18 2000 - 08:34:06 EDT

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clyder wrote:

> > Rakesh is right on target here. The Babbage problem is central to the
> problem
> > associated with Rational Expectations Marxism. In an economy with rapid
> tech.
> > change, no one can predict what an appropriate value-depreciation should
> be.
> Does this not vitiate the whole premise of the formation of a uniform rate
> of profit?
> Is the idea of a transformation from values to prices of production still
> tenable
> if the valuation of fixed capital is indeterminate?


I think a theory of prices is essentially a static problem. There cannot be a
dynamic theory of prices, particularly when technological change is taken into
consideration. You simply cannot have any means of consistent measurement.
Ricardo did want to have a theory of prices in a dynamic context of technical
change. But all the works have shown that this was "will o' the wisp". Cheers,
ajit sinha

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