Department of Economics
Colorado State University
EC772: Marxist Political Economy
Spring 2014
Professor: Dr. Ramaa Vasudevan
Office: C321 Clark
ramaa.vasudevan@colostate.edu
Office hours: W 3.30-4.30 pm (or by appointment)
Section 001 TR
MWR 9.30-10.45
109 Eddy
COURSE OUTLINE
This course will survey the economic method of Marx and Marx’s critique of Political
Economy. The themes of the course will include Marx’s analysis of Value, Money and
Labor, the reproduction schemes and the circuits of crisis, capitalist dynamics and the
theories of crisis and finally Marx’s analyses of credit and finance At the end of this
course students would have become familiar with the approach and method of Marxian
analysis, surveyed major issues and debates in contemporary Marxian political economy
and critically assessed the relevance Marxian analysis to contemporary capitalism
LEARNING OBJECTIVES/OUTCOMES
A. The course content aims to :
1. Provide a basic theoretical foundation of Marx’s method.
2. Develop a theoretical analytical model to represent Marx’s approach to
capitalist dynamics.
3. Clarify the contrasts and similarities between the models and approach of
Marxist political economy and that of Neoclassicals and Keynesians/ PostKeynesians
4. Explain the current crisis
5. Highlight the contemporary relevance of marx’s economic model.
B. The assignments of the course are also intended to
1. Help develop presentation skills of students
2. Further research skills though a final research project
EXPECTATIONS AND GRADING
You are expected to complete the reading assignments by the week assigned to ensure
productive engagement. The course will be conducted as a mix of lecture and
presentations. Grading will be as follows
Mid term Exam (take home): 40%
Final term paper (due May): 50 %
1
This paper will be an application of Marx’s method/ economic analysis to a contemporary
issue or economic problem
Presentations: 10 %
The last two weeks of classes will be reserved for student presentations of their papers.
There will also be a roundtable on the current crisis where students will make
presentations.
COURSE SYLLABUS AND READINGS (subject to change)
While there is a lot of commentary on Marx’s economic thought, there is no substitute to
reading his own writings. Specifically
Marx, Karl. Capital Volumes 1, 2, 3.
Marx, Karl Grundrisse
Marx Karl Contributions to a Critique of Political Economy
Most of this is also available online at he Marx and Engels archives:
http://www.marxists.org/archive/marx/
Other books worth purchasing:
Foley, Duncan K. 1986. Understanding Capital. Cambridge, MA: Harvard.
G. Dumenil and D. Levy, 2010, Crisis of Neoliberalism; Harvard University Press
Tom Bottomore’s Dictionary of Marxian Economic Thought and The New Palgrave’s
Dictionary on Marxian Economics are useful references.
Course Outline: (Tentative)
Introduction to Marxian Political Economy: Method (1/2 Week)
*Rosdolsky, R. 1977. The Making of Marx's Capital, Pluto Press, London: ch.2
*Marx, K. Contribution, "Preface", pp. 19-23
*Marx, K. Capital I, "Preface to the First German Edition"; "Afterword to the
Second German Edition"
*Marx, K. "Introduction" to the Grundrisse
*Foley, D. Adams Fallacy Ch 3
Dobb M. Political Economy and Capitalism Ch II and III
Meek, R Karl Marx’s Economic method in Economics and Ideology and other
essays
Foley, D Unholy Trinity, Ch 1
Commodities, Exchange and Value (11/2 Weeks)
2
*Marx, K Capital, Volume I, Ch 1-3, Volume III, ch 9.
*Foley, D Understanding Marx’s Capital Ch 1-3
*Shaikh, A. 1983. "Abstract and Concrete Labour", and "Capital as a Social
Relation", New Palgrave Dictionary of Marxian Economics, pp. 42-44.
Shaikh, A., and Tonak, E.A., The Political Economy of National Accounts: An
Alternate Approach to the Measurement of the Wealth of Nations, Cambridge
University Press, 1994: Ch I-II
Rubin I. Essays on Marx’s Theory of Value Ch 1-3 (p 5-31)
Profits and Exploitation (1 Week)
*Marx, K Capital, Volume I, ch 4-11
*Marx, K. Grundrisse, pp.527-530; 690-695; 709.
*Shaikh, A. 1983. "Exploitation", and "Surplus Value", New Palgrave Dictionary.
*Foley D Understanding Capital Ch 4
Weeks, J. 1981. Capital and Exploitation., Ch. 3.
G. Duménil, D. Foley, D. Lévy, A Note on the Formal Treatment of Exploitation in
a Model with Heterogeneous Labor Meteroeconomica 2009, 60, pp 560-569
Different Approaches to Labor Theory of value Theory ( 2 weeks)
*Foley, D. Recent Developments in the Labor Theory of Value. Review of Radical
Political Economy
*Foley, D. The value of money, the value of labor power and the Marxian
transformation problem. Review of Radical Political Economy 14(2) 1982.
*Sweezy, Paul. 1970. The Theory of Capitalist Development: Principles of
Marxian Political Economy, Ch 1-3
*S. Mohun. The Labour Theory of Value as Foundation for Empirical
Investigations”, Metroeconomica 55.1: 65-95, 2004.
Dumenil, Gerard. Beyond the transformation riddle: a labor theory of value.
Science and Society XLV
II, Winter 1983/84.
*Shaikh, A The poverty of algebra. in The Value Controversy, Verso: London
1981.
Shaikh, A. The transformation from Marx to Sraffa. in E. Mandel and A. Freeman,
eds., Ricardo, Marx, Sraffa. Verso: London 1984.
Steedman, I. Marx after Sraffa. Verso: London, 1977. ch 1-2.
Cockshott, Paul, Allin Cottrell and Greg Michaelson. 1995. Testing Marx: Some
new results from UK data. Capital and Class 55.
3
Ochoa, E. 1988. Values, prices and wage-profit curves in the U.S Economy.
Cambridge Journal of Economics 13: 413--30.
Kliman and Mcglone, F. 1999 . A Temporal Single System Interpretation of
Marx’s Value Theory, Review of Political Economy
Reproduction Schemes, Effective Demand Investment and the Circuits of Capital
Approach ( 2 weeks)
*Marx, K. Capital, Vol I, Ch XIX, XXIII-XXIV.
*Marx, K. Capital, Vol III (Part 3).
*Foley D Understanding Capital Ch 5,6
Shaikh
Foley, D 1981. Realization and Accumulation in a Marxian Model of the Circuit of
Capital. Journal of Economic Theory 28.
Foley, D. Money Accumulation and Crisis (p1-26)
Matthew, P. An Econometric model of the Circuit of Capital, Metroeconomica
2000, 51,1
Crotty, J.1993 Rethinking Marxian Investment Theory: Keynes Minsky Instability,
Competitive Regime Shifts and Coerced Investment, Review of Radical Political
Economy
Falling Rate of Profit ( 1 week)
*Marx, K. Capital, Vol. III, Ch 13-15
*Foley D Understanding Capital Ch 7, 8
*Shaikh, A. "Political Economy and Capitalism: Notes on Dobb's Theory of
Crisis", Cambridge Journal of Economics, March 1978, Sec. 4
*Dumenil, G and D. Levy, Technical Change a la Marx and the Profit Rate, 1994,
in M. Glick ed , Competition, Technology and Money: Classical and PostKeynesian Perspectives, Edward Elgar
Basu D. and P.T. Manolokis, Is there a tendency for the rate of profit to fall:
Econometric evidence, Review of Radical Political Economy, 2013.
Sweezy P. Theory of Capitalist Development Ch 6
Okishio, N. (1961) "Technical Change and the Rate of Profit", Kobe University
Economic Review, 7, 1961, pp. 85–99.
G. Duménil, D. Lévy, "The Profit Rate: Where and how much did it fall? Did it
Recover? (USA 1948-2000)", 2002, Review of Radical Political Economy, Vol.
34, pp. 437-461.
Accumulation, Competition and Monopoly (1 Week)
4
*Marx, K. Capital, Vol III, Ch X-XII (competition and the equalization of the
general rate of profit)
*Marx, K. Capital, Vol I, Ch XVI-XXII.
*Foley D Understanding Capital Ch
Shaikh, A. 1983. "Concentration and Centralization of Capital", Dictionary of
Marxist Thought.
*Weeks, J 1981 Capital and Exploitation Ch 6
Sweezy P. Theory of Capitalist Development Ch 8-11
Clifton JA, Competition and the evolution of the capitalist mode of production,
Cambridge Journal of Economics 1977
Labor and Unemployment ( 1 Week)
*Marx, K. Capital, Vol I, Ch XXV
*Rowthorn, B. 1980. "Marx's Theory of Wages", in Capitalism, Conflict, and
Inflation, Lawrence & Wishart, London.
*Pollin, R. 1998.“The "Reserve Army of Labor" and the "Natural Rate of
Unemployment": Can Marx, Kalecki and Wall Street all be wrong? Review of
Radical Political Economics 30,1.
Bottwinick, H. 1993, Persistent Inequalities Ch.1, 2
*Goodwin R.M. 1967. "A Growth Cycle", in C.H. Feinstein, ed., Socialism,
Capitalism and Economic Growth. Cambridge: Cambridge University Press.
Shaikh, A. 1983. "Reserve Army of Labor" and "Impoverishment: Relative and
Absolute Declines in the Position of Workers", pp. 422-423 in DMT,
The Managerial Class, Productive and Unproductive labor ( 1 Week)
*G. Dumenil and D. Levy 2005 Production and Management: Marx’s dual theory
of labor.(http://www.jourdan.ens.fr/levy
*G. Dumenil and D. Levy 2011. Unproductive labor as Profit maximizing labor
(http://www.jourdan.ens.fr/levy/dle2011f.pdf)
David Gordon. 1996. Fat and Mean, Free Press, Ch 1-3, 6
*S. Mohun "Distributive Shares in the U.S. Economy, 1964-2001", Cambridge
Journal of Economics 2006
* S. Mohun: Aggregate Capital Productivity in the US: 1964-202001, Cambridge
Journal of Economics, 2006S.
S. Mohun On Measuring the Wealth of Nations: the US Economy, 1964-2001",
Cambridge Journal of Economics 29.5: 799-815, 2005
Money, Credit and the Financial System ( 1 week)
*Foley, D. 1983. On Marx's theory of money, Social Concept 1(1), 5-19
5
*Foley, D. 1985. Say's Law in Marx and Keynes, Cahiers d'Economie Politique
10/11:183-194
*de Brunhoff, Suzanne, 2005. Marx’s contribution to the search for a theory of
money. Marx’s theory of Money ed. F. Mosely
*De brunhoff S and D Foley. 2007. Karl Marx’s Theory of Money and Credit in A
Handbook of Alternative Economics
Foley D. Marx’s theory of money in historical perspective. Marx’s theory of
Money ed F. Mosely
Vasudevan, R. From the Gold Standard to the Floating Dollar Standard: An
Apparaisal in the light of Marx’s theory of money.
de Brunhoff, Suzanne. 1976. Marx on Money. New York: Urizen.
Itoh and Lapavitsas Political Economy of Money and Finance Ch 2,3
D. Bryan, Randy Martin, M. Rafferty: Financialization and Marx: Giving Labor and
Capital a Financial Makeover Review of Radical Political Economics December
2009 41: 458-472
Debates on Crises ( 1 week)
*Shaikh, Anwar. “Economic Crisis” in T. Bottomore et al, A Dictionary of Marxist
Thought, Oxford: Basil Blackwell, 1983.
*Shaikh, A. 1978 An Introduction to the History of Crisis Theories
in U.S. Capitalism in Crisis, U.R.P.E
*Foley D Understanding Capital Ch 9
Body and Crotty 1975 “Class conflict and the Political Business Cycle. Review of
radical Political Economics, 7, 1
*Crotty, J 1985 The Centrality of Money, Credit and Financial Intermediation in
Marx’s Crisis theory, Rethinking Marxism
P. Kenway
CJE
Current Credit Crisis ( 1 week)
*G. Dumenil and D. Levy. The Crisis of the Early 21st century: A Critical Review
of Alternative Interpretations, http://www.jourdan.ens.fr/levy, 2011
*A. Shaikh, 2010, The First Great Depression of the 21st Century, in The Crisis
this Time: SocialistRegister 2011, edited by L. Panitch, G. Albo and V. Chibber,
Merlin Press.
*Kotz, D. 2009, “The Financial and Economic Crisis of 2008: A Systemic Crisis of
Neoliberal Capitalism,” Review of Radical Political Economics 41:3, 305-17,
2009.
J. Crotty, 2008, Structural Causes of the Global Financial Crisis: A Critical
Assessment of the ‘New Financial Architecture’ University of Massachussetts,
Amherst, Working Paper.
6
*Lapavitsas, C. 2010.“Financialized Capitalism and the Crisis,” Historical
Materialism.
*Michl, T.“Falling into the Liquidity Trap: Notes on the Global Economic Crisis,”
Political EconomyResearch Institute Working Paper 215, University of
Massachusetts, Amherst, 2010.
Mohun, S. 2010. “The Crisis of 2008 in Historical Perspective,” Queen Mary
University Working Paper.
D. Basu and R. Vasudevan, 2011. Technology, Distribution and the Rate of Profit
in the US Economy:Understanding the Current Crisis, CJE 2013Vasudevan, R.
2009, Dollar Hegemony, Financialization and the Crisis, Review of Radical
Political Economics 41, 3.
Additional Topics ( if time permits)
Gender and the Reproduction of labor power
Public Debt and Imperialsim
Marxist perspectives on Ecology
Final Paper Presentations (Week 14/ 15)
Final Paper due May
7