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The place of interest in the theory of production - Term Paper Example

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The place of interest in the theory of production

He won himself a Rockefeller scholarship in 1934 and took up teaching jobs at the University of Michigan in 1936 and University of Chicago in 1938. He served as a go-between for Roosevelt and Stalin in 1944 (post Second World War) and as the Polish ambassador to the US from 1945-1946. In 1946, Lange served as the Polish delegate to the United Nations Security Council. A major part of his contribution to economics came during his stint in the US (1933-1945).
Although a socialist to the core, he was not a great supporter of Marxian labor theory of value, and instead believed in the neoclassical theory of price (http://cepa.newschool.edu/het/profiles/lange.htm).
In this paper, I will actually make an attempt to highlight various things that will make the topic of the place of interest in production theory a bit clearer to the readers. There are a number of things that can be learnt from the production theory. Among these things, some of the important ones are the basics that surround the production theory. These are the basics that will put the discussion of the topic into a definite perspective.
In his paper, Lange has tried to give an explanation of the foundation of the existing Theory of Interest . He has actually tried to restate some fundamental propositions of the existing Theory of Interest by making special reference to the General Theory of Production. Generally any kind of association between the interest theory and theory of production seems to be incomprehensible. Lange has found that unless a close connection between the interest theory and the general theory of production is established, there would remain a huge problem while discussing a very complicated topic on whether net productivity of capital actually exists.
In Lange’s paper, he has tried to explain in a very structured way, the place of interest in the general production theory. For doing that, he has made some assumptions to bring some considerable ...Show more
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