Abstract
The challenge posed to modern economics by the revival of ‘political economy,’ the redevelopment of the approach of the Classical authors and Marx, cuts across contemporary ideological lines. The central issue is the relation between production and the payment of income through the market. This requires an understanding, on the one hand, of the institutions of production, which may involve taking account of some subtle forms of social coercion and, on the other, of the way the market works, and this depends among other things on the way the technology has developed through transformational growth. Each of the major schools of modern economics, ‘the grand neo-Classical synthesis,’ led by Patinkin, free-market conservatism, championed by Milton Friedman, and modern Marxism, represented by S. Marglin, has failed to connect the generation of monetary income payments with the productive process in accordance with the technology in use. The following three essays explore the resulting problems.
* Edited for this volume from E.J. Nell, Free Market Conservatism (1980) and ‘Jean-Baptiste Marglin: A comment on “Growth, Distribution and Inflation,”’ Cambridge Journal of Economics, 9 (2) (June 1985).
Thanks to Alex Azarchs, who co-authored parts of the Chapter in FREE MARKET CONSERVATISM, from which these excerpts have been taken.
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© 1992 Edward J. Nell
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Nell, E.J. (1992). Controversies in Macroeconomics: Patinkin, Friedman and Marglin. In: Transformational Growth and Effective Demand. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-21779-3_25
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