MMT and Embedded Marxian Value

MMT does not presuppose a particular theory of value. In principle, it is possible to situate a subjective or objective view of value within it. The present focus is on Marx’s theory of value and, more specifically, his ‘law’ of value. Marx’s law of value, in which commodity production only occurs on the basis of profitability, and profitability derives from surplus labor, is compatible with MMT so long as it is understood that Marx’s law pertains only to the sphere of commodity production, a sphere that is embedded in a broader socio-institutional context. In a modern monetary system, the context in which commodity production takes place is shaped by currency-issuing government.

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