Browsing by Author "Cole, Nicolas D"
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Item Open Access Endogenous constraints on full productive capacity in a free-market economy(Springer, 2023-04-07) Cole, Nicolas DThe full employment interest rate implicit in classical economic theory is 4½%, deduced by including the rate of normal profit in a simple macroeconomic model. By not fixing the interest rate at this optimum, Central Banks endogenously maintain excess productive capacity, cause unemployment, and encourage the exploitation of Labour by Capital.Item Open Access The full employment interest rate implicit in classical economic theory(Springer, 2022-06-29) Cole, Nicolas DBy including the rate of normal profit in a simple model of the macro-economy, the full employment interest rate is deduced to be 4½% at which Labor is not exploited by Capital. Criticisms by Marx and Keynes of the free-market economy were misdirected at Classical theory instead of the manipulation of interest rates by Central Banks to favour Capital over Labor.