On Sun, 28 Apr 1996, Fred Moseley wrote:
> This is the argument that I wish Alan and Andrew (and others) would respond
> to: the transformation process, as KM interpret it, cannot be complete
> after one or two periods because further transformation is required in
> subsequent periods. It is complete only when no further transformation is
> required.
I agree with Fred on this. One perspective on the "incompleteness" of
the transformation, prior to the convergence of input and output
prices, is -- as I tried to illustrate numerically a while ago --
that the effective rate of profit, for a capitalist who intends to
stay in business, is not truly equalized. The amount of profit that
the various capitalists could spend on consumption -- or, for that
matter, devote to net accumulation -- does not stand in a common
proportion to their outlays.
Allin.