Authors

Jeff Schatz

Presentation Type

Poster Presentation

Symposium Date

2011

Abstract

In this paper we analyze and model the flows of capital in an interlinked economy exhibiting complete simple reproduction. Drawing heavily on Marx's description of circulation in volume 2 of Capital, we graphically and symbolically model the transfer of value between money, productive, and commodity capital. In addition, we allow for the creation of surplus value through production. Combining this with Marx's discussion of simple reproduction and the MELT (Monetary Expression of Labor Time), our model illustrates a capitalist economy in a state of general equilibrium. As a powerful descriptive tool, this mathematical and Maple-coded model combines the insights of volumes 1 and 2 of Capital to enable a more complete understanding of Marxian theory. This model will be usable both as a descriptive and teaching tool, as well as potentially being used to analyze the equalization of profit rates, and the related transformation problem.

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