Some fundamental differences between the post-Keynesian and the orthodox Neo-neoclassical theories can be found by looking at the evolution of the theory of value. There we find two distinct branches, one associated with the Classical economists from the Physiocrats to Ricardo, and the other with the neoclassical economists, such as Jevons, Walras and Marshall. This difference in approach of the two branches can best be described in terms of ‘physical’ and ‘subjective’ conceptions of value. Most often, in recent times, the latter conception goes under the name of price theory in order to escape the implication that it has to do with unscientific ‘value judgements’ and normative theory. Whether a simple change in name is sufficient for this purpose may become clear below.
KeywordsPolitical Economy Classical Tradition Relative Prex Full Employment Classical Economist
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