Marx's theory of price and its modern rivals

Review '...a precious work' - Dr. Vickramabahu Karunaratne, Sri Lanka Guardian About the Author HOWARD NICHOLAS teaches Economics at the International Institute of Social Studies, Erasmus University of Rotterdam, the Netherlands. He has been an advisor to the Ministry of Policy Planning, Sri Lanka, and headed the UNDP's study of the Macroeconomics of Poverty Alleviation in Sri Lanka from 2002-3. He has published in the areas of inflation, development theory, financial markets, the global economy, and the macro dynamics of a number of countries. Cover 1 Contents 6 Preface 10 Chapter 1 Introduction 12 Chapter 2 Marx’s Theory of Price in the Simple Circulation of Commodities 18 2.1 Why Marx begins with the simple circulation of commodities 18 2.2 Understanding the simple commodity circulation process 18 2.3 Understanding price in simple commodity production 20 2.4 The magnitudes of reproduction prices 23 2.5 Actual prices 33 2.6 A digression on social and abstract labour 37 Chapter 3 Marx’s Theory of Price – Capitalist Commodity Production 40 3.1 Understanding prices in capitalism 40 3.2 Marx’s approach to explaining the magnitudes of prices in capitalism 42 3.3 The magnitudes of ‘prices of production’ 45 3.4 Changes in prices of production 55 3.5 Prices of production with non-producible inputs 58 3.6 Monopoly prices 61 3.7 Market prices 63 Chapter 4 Marx on Smith and Ricardo 72 4.1 Adam Smith 72 4.2 Ricardo 75 Chapter 5 Marxist Interpretations of Marx’s Theory of Price 81 5.1 Traditional interpretation 81 5.2 Modern interpretations 88 Chapter 6 The Neoclassical Theory of Price 99 6.1 Introduction 99 6.2 The exchange process 100 6.3 Understanding price 103 6.4 Price constructs 110 6.5 The magnitude of equilibrium relative price 116 6.6 Changes in equilibrium relative price magnitudes 118 6.7 The magnitude of monopoly price 119 6.8 The value of money and equilibrium money price level 121 6.9 The price adjustment process 124 Chapter 7 The Post Keynesian Theory of Price 130 7.1 Introduction 130 7.2 Focus and method 132 7.3 The exchange process 133 7.4 Understanding price 134 7.5 Explicit and implicit price constructs 141 7.6 The magnitude of price 145 7.7 Changes in price magnitudes 147 7.8 The value of money and the aggregate money price level 149 7.9 The price adjustment process 151 Chapter 8 Sraffa’s Theory of Price 153 8.1 Focus, method and approach 154 8.2 The exchange process 159 8.3 Understanding price 160 8.4 Implicit price constructs 168 8.5 The magnitude of relative price 172 8.6 Changes in relative price magnitudes 183 8.7 The magnitudes of money prices 187 Chapter 9 Concluding Remarks 189 9.1 Marx’s contribution to the theory of price, or why choose Marx? 189 9.2 Locating Marx’s theory of price 194 9.3 The significance of rehabilitating Marx’s theory of price 195 Notes 197 References 210 Author Index 220 Subject Index 223 Marx's Theory of Price and its Modern Rivals provides the reader with an original, in-depth and non-dogmatic look at Marx's explanation of price. It brings out the importance that Marx places on the historical emergence, purpose and nature of price, and shows how this emphasis informs his explanation of its magnitude, especially the pivotal role accorded to the concept of value. It also shows how Marx's theory can be extended to explain the actual movement of prices over the course of the business cycle. Howard Nicholas also provides a detailed appraisal of other Marxist interpretations, including the New and Temporal Single Systems, and critically assesses various Classical (Smith and Ricardo) and modern (Neoclassical, Post Keynesian and Sraffian) theories of price with a view to bringing out the distinctiveness and pre-eminence of Marx's theory. A fundamental contention of the book is that Marx's theory of price warrants more serious attention than it is presently accorded from those interested in rebuilding the foundations of economic thinking, whether or not they are sympathetic to Marx's purpose in the study of capitalism - its overthrow

Marx's Theory of Price and its Modern Rivals provides an original look at how Marx understood the role of money, extending his theory to consider how prices move over the course of business cycles. Key modern theories of price are also analyzed; Neoclassical, Post Keynesian and Sraffian theories are contrasted with Marxian thought.

Marx's Theory of Price and its Modern Rivals provides an original look at how Marx understood the role of money, extending his theory to consider how prices move over the course of business cycles. Key modern theories of price are also analysed; Neoclassical, Post Keynesian and Sraffian theories are contrasted with Marxian thought.