The reason that inflation and depreciation has to do with the rate of profit is that the numerator has a capital stock associated with it. For example, if a computer is bought in one year, we cannot merely take the market price from last year as its contribution to the total capital stock. Ajit Sinha wrote: > What inflation or deflation has got to do with calculating the generalized rate of > profits? It is a measure for a given point in time, it has nothing to do with >changes in > prices. And if the calculation of the > generalized rate of profits is "abstract", then what economic calculation could be > characterized as "concrete"? --- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
