Description
Book SynopsisIs macroeconomic equilibrium possible under capitalism? How do economic bubbles develop? How does a monetary system influence the market mechanism? Is the return on capital a beneficial feature of the economic system? How does complexity of a capitalist organization influence the market process? Can output under capitalism be easily measured and modeled?Such questions and many others relate to the central concept discussed in the book: heterogeneous structure of production, an envisioned theoretical connection between stages of the capitalist process. An inquiry into the functioning of a capital structure is necessary to understand the workings of the interest rate, savings, aggregate demand, and economic growth. Additionally it provides a theoretical framework to recognize consequences of monetary regimes and interest rate policies performed by the central banks.Capital structure concepts have their place at the center of economic theory as they can provide a broad range of insights i
Trade ReviewMachaj is one of the best economists in his generation, well versed in the history of economic thought and with full command of the cutting-edge issues of contemporary economics. His book sheds new light on a painfully neglected area of modern macroeconomics. Whereas most economists wander on a Keynesian Odyssey of macroeconomics without capital, Machaj highlights the central and crucial role of the concept of stages of production. He convincingly argues that the latter is necessary to make sense of interest rates, aggregate demand, potential output, and monetary policy. Essential reading. -- Guido Hülsmann, Université d'Angers
Capital and interest theory has been referred to as the “black hole of economics.” Yet in Money, Interest, and the Structure of Production, Machaj shows why economists must not ignore this vital component of analysis. Illustrating his expertise in technical theory as well as the history of economic thought, Machaj demonstrates the relevance of the economy's structure of production to several contemporary disputes. -- Robert P. Murphy, Texas Tech University
Economists have long disputed over the usefulness of the structure of production in the analysis of capital and interest. This important volume transcends this debate and brings a fresh new perspective to the structure of production by arguing that the concept plays a crucial role in resolving several vexed questions in monetary and macroeconomic theory and policy analysis. Even if the reader does not agree with Machaj on every issue, he or she will be stimulated to rethink the place of real capital in economic theory. -- Joseph T. Salerno, Pace University
Table of ContentsAcknowledgments Introduction Part I: Microeconomic Aspects of the Capital Structure Chapter 1: Interest as a Factorial Payment Chapter 2: Challenges Concerning the Structure of Production Part II: Macroeconomic Aspects of the Capital Structure Chapter 3: Expenditures Equilibrium and Say’s Law. Chapter 4: Potential Output versus Intertemporal Equilibrium. Chapter 5: Non-Neutrality of Monetary Flows for the Structure of Production. Chapter 6: Monetary Policy as Interest Policy. Conclusion Bibliography About the Author
