Money, Interest, and the Structure of Production
Resolving Some Puzzles in the Theory of Capital
By (author) Mateusz Machaj
Publication date:
05 October 2017Length of book:
214 pagesPublisher
Lexington BooksISBN-13: 9781498557542
Is 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 into our understanding of the real world. Money, Interest, and the Structure of Production offers key insights in that direction.
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 into our understanding of the real world. Money, Interest, and the Structure of Production offers key insights in that direction.
Machaj 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.