Prices of Production In a Monetary Economy: A Note

Date

1996

Author

Ekinci, Nazım Kadri

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Prices of production in a monetary economy are defined with reference to the concept of monetary equilibrium as defined by Keynes. The distinction between the supply price and the demand price of capital assets is recognized as a fundamental insight of Keynes. The function of the prices of production is to generate just enough quasi-rents accruing to a capital asset to equate the two prices of a newly purchased capital asset. Accordingly, equal amounts of money will earn the same expected rate of return in all industries, if equal amounts of money were invested in newly produced capital assets in respective industries.

URI

https://hdl.handle.net/11511/109511

Collections

Department of Economics, Article