Overvalued capital and labor theory of value

[Michael Perelman]

In my book on Marxist crisis theory, I suggested a relationship between the
labor theory of value and fictitious capital.  I argue that there must be some
linkage between values and prices, and that the accumulation of fictitious and
values weakens that linkage.  As a result, increasingly irrational production
decisions occurred, undermining the system.  In effect then, we have an analog
of Minsky's financial fragility operating on the production side.

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu