Rakesh writes:
>Doug H and Fred M have both argued that spike of profit rate (as
conventionally measured) especially in the 90s was a result influx of foreign
capital, which reduced borrowing costs. <
I missed this. I
don't know what Doug and Fred argue here, but I think Marx's theory that the
profit rate is determined independently of -- and largely constrains -- the
interest rate is a good one. Since I see the profit rate as determined by
accumulation, technological change, class struggles, etc., I don't see how a
temporary spike in interest rates could determine the profit rate. BTW, the
profit rate I use has both interest and non-interest profits in the numerator.
JD
