The Mismatch Thesis. Fiction and Reality in the Accumulation of Capital

The Mismatch Thesis. Fiction and Reality in the Accumulation of Capital
Bichler, Shimshon and Nitzan, Jonathan. (2023). Revista de Estudios Globales. Análisis Histórico Y Cambio Social. (Special Issue: Capital ficticio y digitalización). Vol. 3. No. 5. December. pp. 13-40. (Article - Journal; English).

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Abstract or Brief Description

Political economists, both mainstream and Marxist, find it difficult to reconcile the «real» and «financial» appearances of capital. The conventional view is that «real» capital is an objective productive entity; that «finance» merely reflects this reality; and that, unfortunately, the reflection is often inaccurate, causing the two to «mismatch». This convention, we argue, is baseless if not fraudulent. First, although economists know full well that «real» capital, comprising different capital goods, cannot have a unique objective quantity – they measure this pseudo quantity anyway, arbitrarily. Second, when they realize that their arbitrary measure of «real» capital differs greatly from the corresponding magnitude of finance, they blame the deviation on invisible fluctuations in intangible capital, investor irrationality and market imperfections. And third, they insist that «real» accumulation drives «financial» accumulation, even though their own measures show that the two processes move in opposite directions!



Publication Type

Article - Journal

Additional Information

(Special Issue: Capital ficticio y digitalización)


capital accumulation finance Marxism measurement neoclassical economics real-nominal duality Tobin’s Q


BN Methodology
BN Money & Finance
BN Region - North America
BN Theory
BN Value & Price
BN Business Enterprise
BN Capital & Accumulation
BN Crisis
BN Data & Statistics

Depositing User

Jonathan Nitzan

Date Deposited

27 Jan 2024 03:00

Last Modified

30 Jan 2024 12:44


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