A Monetary Theory of the Rate of Profits

Abstract

It is now time to draw some conclusions from the analyses previously presented, in order to evaluate whether the existing literature provides support for a theory of the rate of profits where monetary influences are given a significant role and to point out some analytical conditions allowing the development of this theory. The problem has been dealt with in this book by looking at two points, i.e. the possibility of arguing for a monetary determination of the interest rate, and the analysis of the forces linking the relative movements of the rates of interest and profits. While on the former point the conclusions derived from the previous investigation will be simply re-stated, on the latter point an attempt will be made to combine the views previously presented in order to develop a final analytical model relating changes in financial markets to changes in the distribution of income and prices of production.