Until a century ago most thinking on economic matters was being done in terms of labour theories of value. These theories had the merit of presenting larger economic issues in the perspective of social divisions of labour. About 100 years ago, marginal theory arose, shfting the discussion of 'value' from the sphere of production to the market. Everything - not only price but income distribution - was explained in terms of impersonal market forces. Sound familiar?

Over the course of several decades, the marginal theory of value has come to be described- variously- as the self-equilibrating market model; or monetarism, or even neo-classical economics. It is still the dominant market model in play today. The question is, does it work?

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