Re: [Pen-l] What is the Crisis About? Fictitious Capital or the Destruction of Wealth?

[michael perelman <michael@xxxxxxxxxxxxxxxxx>]

Tobin's Q is a pretty weak macro variable, although Keynes took it 
seriously.  Why isn't it Keynes' Q.

Anyway, I wrote a book about the subject:

Keynes, Investment Theory and the Economic Slowdown: The Role of 
Replacement Investment and q Ratios (NY and London: St. Martin's and 
Macmillan, 1989).



> On Mar 12, 2009, at 11:29 AM, Jim Devine wrote:
>
> > is it right to think of "fictitious capital" as referring to cases
> > where Tobin's Q is greater than one? (One version of Q is
> > (stock-market valuation of real assets)/(actual value of those
> > assets), though Tobin uses the reproduction cost of those assets in
> > the denominator.)


--
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
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