ABSTRACT
This problem arises as a consequence of ‘reverse capital deepening’, that is, the possibility that in a multisectoral economy the relationship between capital per unit of labour and the rate of profit (rate of interest) may be increasing. (In a onecommodity economy the relationship is necessarily decreasing.)
It is also known that in a multisectoral economy the shape of the relationship between capital per unit of labour and the rate of profit depends on the numéraire. Therefore, someone might be inclined to think that the main criticism put forward
against neoclassical theory in the capital controversies is simply a question of the choice of numéraire.
