The realization problem was first considered by classical economists such as Ricardo and Sismondi. Keynes’s theory of effective demand has a bearing on it too. But it was Marx who gave it its most rounded – and controversial – treatment. At its simplest, the realization problem amounts to this: is there sufficient monetary demand for the commodities which have been produced to be sold, and sold at their value?
- Kenway, P. 1980. Marx, Keynes and the possibility of crisis. Cambridge Journal of Economics 4(1): 23–36.Google Scholar
- Keynes, J.M. 1936. The general theory of employment, interest and money. London: Macmillan, 1973.Google Scholar
- Marx, K. 1885. Capital, vol. II. Harmondsworth: Penguin, 1978.Google Scholar
- Rosdolsky, R. 1968. The making of Marx’s ‘Capital’. London: Pluto, 1977.Google Scholar