A new contribution to the debate on effective demand

The central purpose of the article is to explore some consequences of the absence of the notion of turnover time (or an equivalent) in the formulation of the theory of effective demand. It opens with an attempt to redefine the schemes of reproduction in order to get expressions that 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.

KEYWORDS:
Effective demand; Marxism; reproduction schemes