The "New Solution" to the Transformation Problem: A Sympathetic Critique

This paper critically evaluates the "new solution" to the transformation as presented by Foley and Dumenil and others, from the perspective of the author's "macro-monetary" interpretation of Marx's theory. The main issue emphasized is the method of determination of the inputs of constant capital and variable capital in Marx's theory-whether these inputs are taken as given as quantities of money capital or derived from given quantities of physical goods.