Rosa Luxemburg’s critique of Marx’s schemes of reproduction: a re-evaluation and a possible generalisation

Abstract

Rosa Luxemburg's critique of Marx's Schemes of Reproduction is the only genuinely immanent critique of Marxian dynamics. But it needs to be brought up to date. To this end, in this paper it is placed in the context of more modern discussions of dual instability, in order to gain a better understanding of the role of price - as against quantity - adjustment in tackling instability. This allows us to discuss the path of prices as well as of quantities which have been the sole subject of controversy hitherto. Our approach also allows us to tackle the money circuit of capital parallel to the value circuit as outlined in the first part of Capital Vol 2.Rosa Luxemburg; accumulation; dynamic instability; linear models.