SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC. 530

rium rate of interest, #°, gives the maximum rate at which
all industry can grow in balance without labour shortages.
We may, therefore, refer to »° as the voN NEUMANN rate of
interest. The long-run equilibrium prices v°; corresponding
to 7° are referred to as the voN NEUMANN normalized prices.

GURE

‘IGURE 1

3. In the following we fix r at the voN NEUMANN rate : .
We assume that wages are paid at the rate such that it enables
‘he workers, if they chose, to buy the same amounts of all
goods as those which they would buy at the long-run equilibrium
 prices, v,% ..., v,° (corresponding to #°); that is, the
money-wage rate p,, is adjusted so as to maintain the real-wage
rate at the voN NEUMANN state. We have

IS,

- a
“i 3

#

Furthermore, we assume that the workers grow at the voN NEU-MANN
 rate throughout the period during which the real-wages
are kept at the voN NEUMANN level.

9 1

Morishima - pag. 11