Income Distribution In A Monetary Economy: A Ricardo-Keynes Synthesis
The paper provides a novel theory of income distribution and achieves an integration of monetary and value theories along Ricardian lines, extended to a monetary production economy as understood by Keynes. In a monetary economy, capital is a fund that must be maintained. This idea is captured in the circuit of capital as first defined by Marx. The authors introduce the circuit of fixed capital; this circuit is closed when the present value of prospective returns from employing it is equal to its supply price.