From: Paul Cockshott (wpc@dcs.gla.ac.uk)
Date: Wed Jul 02 2008 - 19:47:08 EDT
I have not read the Pasinetti, I will do so, but the only non-exploitative rate of interest is 0% provided that the melt is constant. In our book on socialism we propose that certain savings accounts paying 0% be available to people who want to save for future consumption. This however is quite different from a coop with a surplus lending to one with a deficit or shortfall of cash. Paul Cockshott Dept of Computing Science University of Glasgow +44 141 330 1629 www.dcs.gla.ac.uk/~wpc/reports/ -----Original Message----- From: ope-bounces@lists.csuchico.edu on behalf of Ian Wright Sent: Wed 7/2/2008 10:28 PM To: Outline on Political Economy mailing list Subject: Re: [OPE] market socialism > 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 _______________________________________________ ope mailing list ope@lists.csuchico.edu https://lists.csuchico.edu/mailman/listinfo/ope
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