Many of the standard results of the neoclassical theory of international trade also come into question when exposed to the possibilities of capital heterogeneity and production through historical time. Since this criticism is well documented (cf. [54, 55, 102, 103, 105]), as are the extensions of Keynes’s short-period theory to trade (e.g. [76, part iii]) these aspects will not be taken up here. The reader is, however, directed to Steedman  and Steedman and Metcalfe  for a reappraisal of Ricardo’s theory in relation to later neoclassical interpretations of Ricardo’s approach.
KeywordsExchange Rate Open Economy Real Wage Capital Accumulation Capital Good
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