[OPE-L:5779] Re: RE: Re: Re: heterodox theories of value and Grossman n

From: Rakesh Narpat Bhandari (rakeshb@Stanford.EDU)
Date: Mon Jun 04 2001 - 11:43:37 EDT

>This horses for courses approach is only one tradition in Post Keynesian
>Economics. The likes of Dudley Dillard, Randall Wray and Pasinetti all argue
>that Keynes had a labour theory of value, with the assumption that labour is
>the only factor of production. In view of other comments on Grossmann and
>Mattick, it could equally be charged that 'Marxists have no theory of
>monetary production'. Such Grossmanite models treat capitalism like a corn
>economy in which this scarce stock of surplus value constraints the system.

The model is not Grossmann's but Bauer's. Andrew (T), if you would 
just read the book, you would see that Grossmann tries to work his 
way out of Bauer model with a theory of credit. Grossmann in fact 
underlined that marx never completed his theory of credit, and tried 
to make a contribution in this regard. What constrains even the Bauer 
system however is not only the insufficiency of surplus value for 
further accumulation but the declining profitability which results 
from the capitalisation of surplus value--that is, grossmann's 
extension of the bauer scheme reveals that that there is another 
explanation for the so called declining marginal efficiency of 
capital which is neither as absurdly subjective as the Keynesian 
conception is nor objective in the sense of fantasically misapplying 
Ricardian notions of decreasing returns to the capital stock.  As for 
Mattick, he never made use of the Bauer scheme, and wrote a book 
called Economics, Politics and the Age of Inflation in which the 
monetary aspects of production are analyzed throughout.
movers aren't here yet, glad i could get this off. but this nonsense 
of saying that grossmann can be reduced to the bauer scheme has to 
stop; and since mattick rejected grossmann's use thereof (see the 
former's Economic Crisis and Crisis Theory), it is absurd to charge 
him with him with over use of a corn model. and if steve k agrees 
with your characterization, it is only because he has not read either 
grossmann or mattick, sr.
bye again, Rakesh

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