The Theory of Accumulation: A Marxian Approach to the Dynamics of Capitalist Economy

This book provides a unified approach to analyzing growth and cycles in capitalist economies, incorporating a macro-dynamic theory based on Marxian micro-foundations and historical perspectives. It challenges the traditional frameworks used in mainstream economics and offers an alternative perspective to address the criticisms of mainstream macroeconomics during the global financial crisis. The book proposes a historical perspective for the capitalist system, emphasizes the role of productive force in production relations, and discusses the trade-off between the real wage rate and the profit rate. It attributes the origin of the business cycle to labourers' under-consumption and private capitalists' dispersive decision of accumulation, and argues that the development of productive force through the business cycle will ultimately transform the production relation into a new economic system.

Format: Paperback / softback
Length: 299 pages
Publication date: 20 January 2023
Publisher: Springer Verlag, Singapore

This book provides a comprehensive and innovative approach to understanding the mechanisms of growth and cycles in capitalist economies. By integrating a macro-dynamic theory rooted in Marxian micro-foundations and historical perspectives, it offers a fresh perspective on long-term economic development and business cycles. Developed approximately 50 years ago by Nobuo Okishio (1927–2003), this theory incorporates the ideas of Keynes and Harrod. In the realm of mainstream economics, it was customary to analyze long-term economic growth and business cycles using distinct frameworks. However, recent developments have seen a shift in this approach, although they often continue to be discussed separately.

At the onset of the global financial crisis of 2007–2008 and the prolonged stagnation that followed, there was widespread criticism among policymakers and business leaders that mainstream macroeconomics lacked compelling explanations and effective policy recommendations. This book presents an alternative perspective that addresses these criticisms. Given the complex and challenging macroeconomic difficulties we face, it is crucial to seek wisdom beyond the limited neoclassical framework. Okishio's sharp and insightful thoughts will provide valuable tools for young researchers worldwide to address the challenges of resource misallocation, the Great Recession, and the Lost Decades problems.

Okishio begins by proposing a historical perspective for the capitalist system. He argues that production relations are shaped by the interplay between productive force and the forces of production. He suggests that as productive force improves, production relations should evolve accordingly, and vice versa. While reproduction is essential for the continuation of any production relations, it takes a specific form in the capitalist economy.

Next, Okishio demonstrates that the existence of profit necessitates the exploitation of labor. This fundamental Marxian theorem is a key concept in his theory. He also highlights a trade-off between capital and labor, which is a central aspect of capitalist economies.

Throughout the book, Okishio employs a rigorous analytical approach to explore the mechanisms of growth and cycles in capitalist economies. He examines various factors such as technological advancements, capital accumulation, and the role of the state in shaping economic outcomes. He also discusses the historical development of capitalism and its impact on social structures and inequality.

One of the distinguishing features of this book is its integration of historical perspectives and macroeconomic theory. Okishio draws on historical events and economic theories from different periods to provide a comprehensive understanding of the evolution of capitalist economies. This approach helps to shed light on the complex dynamics that have shaped our economic system and provides insights into the potential challenges and opportunities that lie ahead.

In conclusion, this book offers a valuable contribution to the field of macroeconomics. By providing a comprehensive and innovative approach to understanding the mechanisms of growth and cycles in capitalist economies, it offers a fresh perspective on long-term economic development and business cycles. Through its integration of historical perspectives and macroeconomic theory, it provides valuable tools for young researchers worldwide to address the complex challenges we face in the 21st century.

Weight: 498g
Dimension: 235 x 155 (mm)
ISBN-13: 9789811679070
Edition number: 1st ed. 2022