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The Marginal Efficiency of Capital: Reply to Fuller’s Rejoinder

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Tags Capital and Interest Theory

04/30/2015Lucas M. Engelhardt

Volume 18, Number 1 (Spring 2105)

ABSTRACT: This is a brief reply to “The Marginal Efficiency of Capital: Rejoinder.” I explain that I never intended to defend Keynes against Fuller’s (2013) criticism. Rather, I intended to highlight that Keynes’s conclusions rest on a key shortcoming in Keynes’s theory: the assumption of sticky factor prices.

KEYWORDS: John Maynard Keynes, marginal efficiency of capital, net present value
JEL CLASSIFICATION: E12, E22, E52, E58
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Contact Lucas M. Engelhardt

Lucas M. Engelhardt is an associate professor of Economics at Kent State University's Stark Campus. His work is in macroeconomics, primarily in examining how various assumptions about capital affect business cycle models.

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