How to Calm Down

[Brad De Long]

>Carrol Cox wrote:
>
>>Someplace in Vol. 3 of  *Capital* Marx declares that there is no law of
>>interest rates, for interest rates are driven by the kind of contingent
>>events
>>that bourgeois economists claim drives prices, and that therefore they are
>>utterly unpredictable. Does something like this observation apply to the
>>stock
>>market?
>
>You thinking of this? "Where, as here [with interest rate determination],
>it is competition as such that decides, the determination is inherently
>accidental, purely empirical, and only pedantry or fantasy can seek to
>prsent this accident as something necessary." And yes; you could easily
>take stocks as a form of interest-bearing capital.
>
>Doug

No necessary connection between the real interest rate and the rate of
profit? Or the nominal interest rate and the rate of inflation?

My my...

Brad DeLong

Professor J. Bradford De Long
Department of Economics, #3880
University of California at Berkeley
Berkeley, CA 94720-3880
(510) 643-4027; (925) 283-2709 voice
(510) 642-6615; (925) 283-3897 fax