The Marxian Schemes of Reproduction and the Theory of Effective Demand
Posted: 17 Jan 2009
Date Written: January 2009
The paper deals with some theoretical and analytical issues raised by a recent book by Trigg on Marx's schemes of reproduction. The paper presents a generalized model of expanded reproduction and concentrates on the attempt to develop Marx's schemes along Keynesian lines. Trigg tries to develop a Keynesian interpretation of the schemes without significant changes to Marx's original approach; the paper argues that the abandonment of some of Marx's hypotheses, in particular that of free competition, is necessary to allows us to provide a Marxian determination of underemployment equilibria and to use a Marxian version of the Keynesian concept of multiplier. In considering Marx's and Keynes's analyses of capitalist economies, the paper also emphasizes their similarities with respect to the importance of money and the capitalists' liquidity preference in the process of reproduction and growth.
Keywords: Marxian reproduction schemes, Effective demand, Money, Keynesian multiplier, Multisectoral growth models
JEL Classification: Q41, E11, E12
Suggested Citation: Suggested Citation