ABSTRACT
Duncan Foley (1982, 1986a,b, 1997) has produced a series of path-breaking papers formalizing Marx's notion of the circuits of capital. In Capital Volume II Marx develops a detailed analysis of turnover time and its relation to the time of production and the time of realization in the overall circuit of capital (Marx, 1967a, Ch. XII–XVII). Following Marx, Foley “treats ‘capital’ as stocks of value tied up in capitalist production as a result of time lags, rather than as an independent productive factor” as in the neoclassical production function. “The circuit of capital [approach] emphasizes the relation between stocks and flows in capitalist production: because calendar time is required for each phase of the circuit of capital, production, realization, and reinvestment of realized value, flows of value through the circuit accumulate in stocks” (Alemi and Foley, 2010, p. 2; Foley and Alemi, 1997, p. 1).
