Cole, Nicolas D2023-04-122023-04-122023-04-07Cole, Nicolas D (2023). Endogenous constraints on full productive capacity in a free-market economy. Evolutionary and Institutional Economics Review.https://doi.org/10.1007/s40844-023-00254-yhttps://dspace.lib.cranfield.ac.uk/handle/1826/19439The 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.enAttribution- 4.0 Internationalhttps://creativecommons.org/licenses/by/4.0/Full Employment Interest RateProductive capacityFree marketArticle