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

The Quarterly Journal of Austrian Economics

Tags: Capital and Interest Theory

04/30/2015 Quarterly Journal of Austrian Economics Lucas M. Engelhardt

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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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