Alternative Post-Keynesian Analyses — II
To those readers who still find it difficult to follow the logic of the long-run equilibrium growth models I would suggest a device. We have normally been used to think in terms of a free market economy and then to extend the results to the case of a centrally planned economy. Here, it turns out to be much more helpful to reverse the procedure and to think first in terms of a centrally planned economy. For, in this case, the relationship (an equilibrium relationship) between the long-run rate of profit and the natural rate of growth emerges immediately. The corresponding relationship for a free market economy will then appear much easier to grasp. [67, p. 77].
KeywordsFull Employment Total Profit Ruling Rate Profit Rate Total Saving
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