Wouldn't it be fair to say that the driver is the expectations of profits rather than profits, although current profits obviously do have an effect on expectations.
On Tue, Jun 26, 2012 at 7:11 AM, robert mckee <[email protected]> wrote: > http://thenextrecession.wordpress.com/2012/06/26/profits-call-the-tune/ > > Empirical work done on the causes of ‘business cycles’ or booms and slumps > in capitalist economies by all the mainstream economics researchers > (Matthews, Wesley Mitchell, Tinbergen) conclude that the movement in > investment is driven by movements in profitability. But Keynes and the > Keynesians ignored the evidence and continued with the mantra that “it is > investment that calls the tune” , to use the phrase of Hyman Minsky. This > is the direct opposite of Marx’s view that ‘profits call the tune’. > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- Michael Perelman Economics Department California State University Chico, CA 95929 530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
