RE: [OPE] webpage computing dynamic rate of profit

On Sun, 17 May 2009, GERALD LEVY wrote:

> The question is what happens to V? Conventionally, within Marxian
> analysis, V, like C, is a cost of production and belongs in the
> denominator of the rate of profit.

Stocks and flows. Dave is calculating a rate of profit on capital
stock. In that context V matters only insofar as the payment of
wages requires that a stock of cash be held by capitalists. This
will be small. For workers paid weekly it will be at most one
week's wages, but in fact the time-average will be less than that
since the capitalists are likely to practice active "money
management" and will swap in and out of interest-bearing assets.

Allin

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Received on Sun May 17 14:00:28 2009