Re: [OPE-L] equilibrium and simultaneous vs. sequential determination

From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Tue Sep 11 2007 - 07:12:36 EDT


--- Fred Moseley <fmoseley@MTHOLYOKE.EDU> wrote:

> Quoting ajit sinha <sinha_a99@YAHOO.COM>:
>
> > --- Fred Moseley <fmoseley@MTHOLYOKE.EDU> wrote:
> >
> >> Ajit, Ricardo and Torrens dealt with unequal
> ratios
> >> of fixed capital
> >> and circulating capital across industries.  They
> did
> >> not deal with
> >> unequal turnover perods of circulating capital
> >> across industries, which
> >> is what I am talking about.  I argue that
> Sraffa's
> >> theory requires
> >> equal turnover periods of circulating capital
> across
> >> industries for
> >> reasons given in my last message.  If anyone in
> the
> >> Sraffian literature
> >> has explicitly incorporated unequal turnover
> period
> >> of circulating
> >> capital across industries, please give the
> >> references.  Thanks.
> >>
> >> Fred
> > ________________________
> > "It is also to be observed that the circulating
> > capital may circulate, or be returned to its
> employer,
> > in very unequal times. The wheat bought by a
> farmer to
> > sow is comparatively a fixed capital to the wheat
> > purchased by a baker to make into loaves. One
> leaves
> > it in the ground, and can obtain no return for a
> year;
> > the other can get it ground into flour, sell it as
> > bread to his customers, and have his capital free
> to
> > renew the same, or commence any other employment
> in a
> > week." (Ricardo, WORKS, I, p. 31)
>
>
> OK, Ricardo was aware of unequal turnover periods of
> circulating
> capital across industries.  But he did not deal with
> this issue in the
> pages that follow.  Instead, his machines-corn-cloth
> model assumes that
> all these industries have the same turnover period –
> one year.
>
> And more to the point: Sraffa does not take into
> account differences in
> the turnover periods across industries in his
> theory, not has any other
> Sraffian to my knowledge.  If I am mistaken, please
> give references.
>
> Comradely,
> Fred
_____________________________
I really don't understand the nature of your problem.
As Ricardo clearly tells you what is a circulating
capital for one could be treated a relatively fixed
capital for other. The distinction between fixed and
circulating capital is a matter of convention.
Ultimately all these differences boil down to
differing time-structure of capital--and this is the
source of all the problem. Differences in organic
composition of capital of Marx must show up as
differences in time-structure of capital of Ricardo.

Now, what do you think is the circulating capital in
wine production and a chest made of oak tree? Cheers,
ajit sinha



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