production of commodities by means of commodities

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Sraffa's path-breaking prelude to a critique of marginalism in economics. Sraffa demonstrates that prices can be accurately described as those accounting values which allow the reproduction of an economic system given a relative distribution of power; wages or profits are given from the outside and prices fall into line. Sraffa demonstrates the paradoxical phenomena of reverse capital deepening (Wicksell effects), re-switching and so on. The cause of the 'Cambridge Capital Controversies' which ended with neo-classicals admitting defeat and then subsequently ignoring the results found within.

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