From: Ian Wright (wrighti@acm.org)
Date: Wed Jul 02 2008 - 17:28:38 EDT
> How often does a real rate of interest correspond to this 'natural > rate'. > I would submit that the determinants of the real rate have no mechanism > to bring it into line with the natural rate. I am sure you are right. But a socialist economy might be able to determine the natural rate and have macroeconomic mechanisms to ensure that the actual rate of interest conforms to it. In which case, cash-rich co-ops lending to cash-poor co-ops would not entail exploitation. The concept of a "natural rate of interest" is Pasinetti's. It's based on the labour theory of value. Here's a paper of his that defines and explains it, in particular how it implements "commutative justice": http://www.unicatt.it/docenti/pasinetti/paper9.asp _______________________________________________ ope mailing list ope@lists.csuchico.edu https://lists.csuchico.edu/mailman/listinfo/ope
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