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

From: Paul Cockshott <>
Date: Wed Jan 27 2010 - 05:49:53 EST

I think that is a correct presentation, but he never gets as far as constructing any theory of :
1. what determines the stock of loanable funds
2. what determines the demands for loanable funds

in consequence he has no real theory of the interest rate
From: [] On Behalf Of Ian Wright []
Sent: Wednesday, January 27, 2010 1:30 AM
To: Outline on Political Economy mailing list
Subject: [OPE] Did Marx have a loanable funds theory of the interest rate?

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 Wed Jan 27 05:55:59 2010

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