Representing the production and circulation of commodities in material terms: On Sraffa's objectivism

Kurz, Heinz D.; Salvadori, Neri

doi:10.1080/09538250500147189

Cited by 75 publications

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“…These conclusions rest on a model which has been so far based mainly on accounting relationships (see, for some motivations of this methodological "objectivism", Kurz and Salvadori, 2005). These relationships are in this Section supplemented with two behavioural hypotheses in order to make some conjectures about the potential dynamics of the monetary union.…”

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confidence: 99%

‘Solvency rule’ and capital centralisation in a monetary union

Brancaccio¹,

Fontana

2015

CAMECO

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Brancaccio and Fontana (2013) have suggested that the central bank influences the solvency conditions of firms and households in the economic system. This "solvency rule" is examined here within a stylised model of a monetary union characterised by different rates of accumulation and inflation across its two member countries. The rule highlights the existence of a relationship between the interest rate set by the central monetary authority, and the allocation of ownership of physical capital among the member countries of the monetary union, i.e. the "rates of capital centralization". The paper also shows the conditions under which the existence and stability of policy mechanisms, including deflationary, currency devaluation and government intervention policies, are able to guarantee the achievement and maintenance of the solvency condition in a stylised monetary union. (0)113 343 4465). We are grateful to the two anonymous referees of this Journal for very helpful comments and suggestions, which have helped to improve the paper considerably. All errors are our responsibility. VECCHIO Brancaccio and Fontana (2013) have suggested that the central bank influences the solvency conditions of firms and households in the economic system. This "solvency rule" is examined here within a stylised model of a monetary union characterised by different rates of accumulation and inflation across its two member countries. KeywordsThe rule highlights the existence of a relationship between the interest rate set by the central monetary authority, and the allocation of ownership of physical capital among the member countries of the monetary union, i.e. the "rates of capital centralization".The paper also shows the conditions under which the existence and stability of policy mechanisms, including deflationary, currency devaluation and government intervention policies, are able to guarantee the achievement and maintenance of the solvency condition in a stylised monetary union. NUOVOBrancaccio and Fontana (2013) have suggested that the central bank influences the solvency conditions of firms and households in the economic system. This "solvency rule" is examined here within a stylised model of a monetary union characterised by different rates of accumulation and inflation across its two member countries.The rule highlights the existence of a relationship between the interest rate set by the central monetary authority and the "rates of capital centralization", which describe the changes in the allocation of ownership of physical capital among the member countries of the monetary union.The paper also shows the nexus between solvency and government debt sustainability and examines the implications of deflationary or currency devaluation policies for the solvency condition and the speed of capital centralization. Commented [GF1]:I am not sure I follow this suggestion. As far as I remember, the "rates of centralization" of physical capital refer to the net sales or acquisitions of existing capital that are necessary to guarante...

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‘Solvency rule’ and capital centralisation in a monetary union

Brancaccio¹,

Fontana

2015

CAMECO

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“…To be sure, in the early times in which he fi rst conceived the idea of writing a book on the theory of value, Sraffa had in mind a specifi c determinant of relative prices, which was "physical real cost." With the "no-surplus" equations, he was trying to formalize the old conception of William Petty, as the most convincing exegetic works based on the unpublished manuscripts have argued (Kurz 2002;Kurz and Salvadori 2005;Gehrke and Kurz, this issue). Whatever reason (perhaps a good one) Sraffa had for omitting any reference to this conception in the book, it is nevertheless of some interest to note that our analysis of the "arithmetic of exchange" can also be interpreted in terms of "physical real cost."…”

Section: Sraffaʼs Equations and "Physical Real Cost"mentioning

confidence: 96%

Exchange and Production Equations: Understanding a Debate between Harrod and Sraffa

Opocher¹

2006

History of Political Economy

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Harrod’s claim, that the relative prices that solve Sraffa’s “no-surplus” equations reflect the ratios of the amounts exchanged, deserves more than the scanty tribute paid by the author of Production of Commodities by Means of Commodities. Not only, in fact, does this claim hold true in the simple sense referring to direct, bilateral exchange when there are two commodities (and, in special cases, when there are more than two), but it holds true generally, in the more elaborate sense referring to amounts directly and indirectly exchanged by pairs of industries

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“…14 For more details, see Kurz and Salvadori (2005). 15 Sraffa, in fact, thought to be able to cover not only renewable natural resources, such as lands of unchanging qualities, but also exhaustible resources, such as mineral ores and oil deposits.…”

Section: A 'Purely Mystical Conception'mentioning

confidence: 99%

“… See Garegnani (2005).4 For more details, seeKurz and Salvadori (2005).5 To distance himself from Marshall, Sraffa coined the term 'physical real cost', but later switched to 'physical cost'.6 While Sraffa associated the physical real cost approach with Petty and his notion of 'the days food of an adult Man, at a Medium', he also pointed out that it was the latter notion which led to the adoption of labour as a common measure of value by the classical economists and Marx. In an undated document he noted, under the heading 'Physical real cost',…”

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Sraffa’s Constructive and Interpretive Work, and Marx

Gehrke

Kurz

2018

Review of Political Economy

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This article provides a summary account of Piero Sraffa's constructive and interpretive work on the classical approach to the theory of value and distribution and its relationship with Marx's contributions. It is shown that in the early phase of his constructive work Sraffa developed his equation systems by adopting a 'physical real cost' approach and a strictly objectivist point of view, and completely eschewed Marx's labour-based approach and the related Marxian concepts. Only at a later stage did he explore systematically the relationship between his own modern re-formulation of the surplus approach to the theory of value and distribution and Marx's contribution. He considered Marx's most important analytical contribution to the further development of the surplus approach to consist of the reintegration of circular production relations, which allowed him to see the existence of a maximum rate of profits and its role in an analysis of accumulation and technical change.

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Representing the production and circulation of commodities in material terms: On Sraffa's objectivism

Cited by 75 publications

References 4 publications

‘Solvency rule’ and capital centralisation in a monetary union

‘Solvency rule’ and capital centralisation in a monetary union

Exchange and Production Equations: Understanding a Debate between Harrod and Sraffa

Sraffa’s Constructive and Interpretive Work, and Marx

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