Tomasson, Gunnar and Bezemer, Dirk J (2010): What is the Source of Profit and Interest? A Classical Conundrum Reconsidered.
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Abstract
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 |
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Original Title: | What is the Source of Profit and Interest? A Classical Conundrum Reconsidered |
Language: | English |
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 |
Item ID: | 20371 |
Depositing User: | Dirk J Bezemer |
Date Deposited: | 03 Feb 2010 00:27 |
Last Modified: | 28 Sep 2019 22:59 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/20371 |
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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) [Currently Displayed]