"[C]onsider an economy with only one private sector and only two assets: money issued by the government to finance its budget deficits, and homogeneous physical capital. Let p be the price of currently produced... consumer goods and capital goods. ...[A]llow the value of existing capital goods ...to diverge from their current reproduction cost—let qp be the market price of existing capital goods."
James Tobin

January 1, 1970

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