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Re: Colander and NK (by now, equilibrium versus ?) <01H7V4WGIXA08WXZLK@csdvax.csd.unsw.EDU.AU>



Steve Keen says that firms do not destroy capital when profit
becomes negative. During a slump large quantities of capital
is destroyed either as a deliberate move by cartels to limit
production, or as a result of the firms with negative profits
going into liquidation. It is however unlikely that the
quantity of capital destroyed is a simple linear function of
the rate of profit.


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