[OPE-L:7350] [OPE-L:880] Re: Re: r & i

Paul Cockshott (clyder@gn.apc.org)
Mon, 12 Apr 1999 22:18:21 +0100 (BST)

At 14:59 12/04/99 -0400, ope-l@galaxy.csuchico.edu wrote:
>Here is Paul C's response, which was evidently intended for the list.
>Paul, could you please expand upon your answer? /In solidarity, Jerry
>
>---------- Forwarded message ----------
>Date: Mon, 12 Apr 1999 17:11:17 +0100
>From: clyder@gn.apc.org
>
>At 09:05 AM 12-04-99 -0400, you wrote:
>>Paul C wrote in [OPE-L:873]:
>>
>>> My belief is that the rate of profit is in the very long run
>>> regulated by the rate of interest,as this sets a ceiling on the
>>> organic composition of capital that is acceptable to industry.
>>
>>Then what determines the rate of interest in the very long run?
>>
>Politics.
>
>>In solidarity, Jerry
>>
>>
>Paul Cockshott
>
>
In modern capitalist societies the rate of interest is set
by the central bank. This is part of the state apparattus
and its policies are determined in the end by the balance
of class forces. The current move in Europe and the UK
for instance to have independent central banks determining
interest rates on purely 'monetary' criteria is a reflection
of the dominance of the right in the late 80s early 90s
when the policy was formulated, and has as its aim the
use of the central bank to set a floor to the rate of
exploitation.


Paul Cockshott (clyder@gn.apc.org)