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Peter Cooper: Heteconomist

Marx, MMT, and a Currency’s Expression of Labor Time

For Marx, a currency’s representation of the labor performed in commodity production is indirect, mediated through a ‘money commodity’. The reason for this is that labor performed in commodity production is not directly social but only made so, indirectly, according to the ‘law’ of value under which the concrete properties of diverse labors are abstracted from and the amount of labor socially necessary to produce each commodity is determined. Since the currency, at least from the...

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Marx, MMT, and a Currency’s Expression of Labor Time

For Marx, a currency’s representation of the labor performed in commodity production is indirect, mediated through a ‘money commodity’. The reason for this is that labor performed in commodity production is not directly social but only made so, indirectly, according to the ‘law’ of value under which the concrete properties of diverse labors are abstracted from and the amount of labor socially necessary to produce each commodity is determined. Since the currency, at least from the...

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MMT and Embedded Marxian Value

MMT does not presuppose a particular theory of value. In principle, it is possible to situate a subjective or objective view of value within it. The present focus is on Marx’s theory of value and, more specifically, his ‘law’ of value. Marx’s law of value, in which commodity production only occurs on the basis of profitability, and profitability derives from surplus labor, is compatible with MMT so long as it is understood that Marx’s law pertains only to the sphere of commodity...

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MMT and Embedded Marxian Value

Bill Mitchell has just posted the first instalment in a two-part series on Marx and MMT. I was unaware of that while preparing the body of this post, but some of what follows bears incidentally on the topic. Bill Mitchell’s series is in response to a Marxist on the panel at one of his presentations who apparently cited Marx’s theory as proof that government, through its spending, is powerless to do anything about employment in a capitalist economy. The phenomenon of some Marxists being...

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Do Sectoral Rates of Surplus Value Tend to Equalize, and Why Ask?

It is suggested in an earlier post that the presence of complex labor affects value creation in Marx’s theory, including at the aggregate level. The argument starts from Marx’s distinction between concrete and abstract labor. In making this distinction, Marx explicitly identifies productivity as a property of concrete labor and labor complexity as a property of abstract labor. Variations in productivity, since they relate to concrete labor, directly affect the aggregate production of...

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Do Sectoral Rates of Surplus Value Tend to Equalize, and Why Ask?

It is suggested in an earlier post that the presence of complex labor affects value creation in Marx’s theory, including at the aggregate level. The argument starts from Marx’s distinction between concrete and abstract labor. In making this distinction, Marx explicitly identifies productivity as a property of concrete labor and labor complexity as a property of abstract labor. Variations in productivity, since they relate to concrete labor, directly affect the aggregate production of...

Read More »

A Currency’s Command over Real Output in a Nutshell

In principle, a currency’s command over any category of real input or output can be considered in terms of a suitably defined price index. The present focus is on the aggregate level and, in particular, a currency’s command over real final output. Earlier posts explore the topic in greater depth (links below). This is a crib notes version. A currency’s command over real final output – loosely, the amount of real stuff a currency unit can purchase – will remain stable so long as the average...

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A Currency’s Command over Real Output in a Nutshell

In principle, a currency’s command over any category of real input or output can be considered in terms of a suitably defined price index. The present focus is on the aggregate level and, in particular, a currency’s command over real final output. Earlier posts explore the topic in greater depth (links below). This is a crib notes version. A currency’s command over real final output – loosely, the amount of real stuff a currency unit can purchase – will remain stable so long as the average...

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MMT Applies to Both Growth and Degrowth

Modern Monetary Theory (MMT) can be applied to growing economies. Equally, as Jason Hickel rightly observes, MMT is also an appropriate macroeconomic framework for proponents of degrowth. The theory makes clear that a currency-issuing government always has the capacity to maintain full employment through implementation of a job guarantee, irrespective of the overall level of aggregate demand or rate of economic growth. As currency issuer, the government faces no financial barrier, nor has...

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MMT Applies to Both Growth and Degrowth

Modern Monetary Theory (MMT) can be applied to growing economies. Equally, as Jason Hickel rightly observes, MMT is also an appropriate macroeconomic framework for proponents of degrowth. The theory makes clear that a currency-issuing government always has the capacity to maintain full employment through implementation of a job guarantee, irrespective of the overall level of aggregate demand or rate of economic growth. As currency issuer, the government faces no financial barrier, nor has...

Read More »