Deflation is one of the most feared terms in economics.

In The Falling Rate of Profit and the Great Recession of 2007-2009, Peter H. Jones develops a new non-equilibrium interpretation of the labour theory of value Karl Marx builds in Capital. Applying this to US national accounting data, Jones shows that when measured correctly the profit rate falls in the lead up to the Great Recession, and for the main reason Marx identifies: the rising organic composition of capital. Jones also details a new theory of finance, which shows how cycles in the profit rate relate to stock market booms and slumps, and movements in the interest rate. He discusses the implications of the analysis and Marx and Engels’ work generally for a democratic socialist strategy.

The new edition of this bestselling textbook covers Macroeconomics today, balancing short-run and long-run issues in a way that emphasises the relevance of Keynesian and classical ideas to current practice. Featuring the latest data and extensive coverage of the current financial crisis, it is the ideal textbook for uncertain economic times. Additional Supplementary products are also available: Macroeconomics Study Guide ISBN: 9781429233729 Macroeconomics Instructor's Resource Manual ISBN: 9781429239363 Macroeconomics Instructor's Solution Manual ISBN: 9781429239424 Macroeconomics Computerized Test Bank (CD ROM) ISBN: 9781429239349 Macroeconomics Printed Test Bank ISBN: 9781429239356 Macroeconomics WebCT ISBN: 9781429239370