Tomasson, Gunnar and Bezemer, Dirk J (2010): What is the Source of Profit and Interest? A Classical Conundrum Reconsidered.
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Classical political economy was underpinned by a shared view of the economy as a circular flow. This begged the question of how the value of produce can exceed the value of factor inputs: the ‘Profit Puzzle’. In this paper we advocate an understanding of the Profit Puzzle as a monetary paradox arising from Say’s Law. We trace how Classical, Keynesian and Neoclassical economists addressed the Puzzle. We suggest a solution based on the work of Bentham.
|Item Type:||MPRA Paper|
|Original Title:||What is the Source of Profit and Interest? A Classical Conundrum Reconsidered|
|Keywords:||Circular Flow, Say's Law, Profit, Credit, Marx, Schumpeter, Keynes|
|Subjects:||B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B12 - Classical (includes Adam Smith)
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy
|Depositing User:||Dirk J Bezemer|
|Date Deposited:||11. Mar 2010 10:14|
|Last Modified:||14. Feb 2013 01:39|
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What is the Source of Profit and Interest? A Classical Conundrum Reconsidered. (deposited 30. Jan 2010 08:33)
What is the Source of Profit and Interest? A Classical Conundrum Reconsidered. (deposited 03. Feb 2010 00:27)
What is the Source of Profit and Interest? A Classical Conundrum Reconsidered. (deposited 09. Feb 2010 04:33)
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