[OPE-L:2396] Re: response to Andrew, Part II

McGloneT@aol.co (McGloneT@aol.com)
Tue, 28 May 1996 12:06:15 -0700

[ show plain text ]

Fred,--Andrew and I have repeatedly stated that we are satisfied with Marx's
one period demonstration of the transformation of values into prices of
production. In our own interpretation, each period is complete, has an equal
rate of profit, and the basic equalities of total value and price as well as
total profit and total surplus value hold. We have repeatedly differentiated
ourselves from iterative solutions, (Shaikh), because we insist that the
Sraffian convergent solution is not to be priviledged over other periods. As
for holding physical inputs and labor constant, that is just a condition of
simple reproduction which is adopted for the specific point of refuting
Bortkiewicz on simple reproduction. The key issue is, "Can simple
reproduction take place without stationary prices, i.e., when input prices
differ from output prices?" Fred, do you think that the transformation must
proceed over multiple periods because only the convergent solution where
input prices equal output prices is "correct" ?