[OPE] Did Marx have a loanable funds theory of the interest rate?

From: Ian Wright <wrighti@acm.org>
Date: Tue Jan 26 2010 - 20:30:53 EST

I've been re-reading Vol. 3, and it seems to me that Marx had a
loanable funds theory of the interest rate in the following sense:
 - The interest rate is determined by the supply and demand of
loanable money-capital.
 - Unlike other commodities money-capital does not have a natural
price, since it does not have a real cost of reproduction, hence there
is no "natural" rate of interest: the interest rate is entirely
determined by the (accidental) laws of competition between financial
and industrial capital.

Would anyone disagree with this reading, or wish to add any qualifications?

Any help appreciated,
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Received on Tue Jan 26 20:33:42 2010

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