RE: [OPE] market socialism

From: Paul Cockshott (
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

-----Original Message-----
From: 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":

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