Abstract

The central purpose of the article is to explore some consequences of the absence of notion of turnover-time (or an equivalent) in the formulation of the theory of effec-tive demand. It opens with an attempt to redefine the schemes of reproduction in order to get expressions, which can best support the relevant discussion. Then it goes on to the examination of the assumptions the principle of effective demand requires to operate and finally suggests the way the concepts developed in book II of Capital might be helpful to explain the cyclical fluctuations of capitalism.

JEL Classification: B51; E11.