Abstract

The capital/product relation in the classical political economy appears as a contradictory
relation between capital and labor. In conformity with the theory of value, as productivity
increases, the commodities are depreciated in labor value, while capital is defined
as value in self-expansion. This paper argues that the increase of the capital/product relation
(or organic composition of capital) is theoretically linked to the decrease of the price level.

JEL Classification: B12; B14.