Problems with Post Keynesian Price Theory: A Marxist Perspective

Abstract

This article looks critically at the Post Keynesian theory of price. It is argued that underlying this theory is a view of the economy from the perspective of the entrepreneur, and it is this perspective that causes Post Keynesians to have a flawed understanding of prices. Specifically, it causes Post Keynesians to have an essentially circuitous and, in the final instance, vacuous explanation of prices. In a nutshell, Post Keynesians end up explaining prices by prices and, in the final instance, the value of money.