677. Joan Robinson to Harrod , 12 June [1937] [a]

[Follows on from 675 , continues at 680 ; Harrod's counterpart is missing]

3, Trumpington St., Cambridge

12 June [1937]

My dear Roy

Yes, my answer to your initial objection 1) was wrong. I should have said that I didn't use either of the methods you propose, because it is necessary to have a measure of the amount of capital which is independent of the rate of interest.

Can you not get into your head (my turn to be rude) that there is a problem of adjusting capital (however you <care> to measure it) so as to give equilibrium to the rate of interest [b] .

There seems to be no difference between the results obtained by our two methods, but my 2 objections to your method prevent me from embracing it. It is "simpler" than mine simply because it doesn't deal with the problem.

Would you meditate on my last letter as now amended, & meanwhile I will try to prepare a fuller statement of my method of measuring capital etc., which I admit you have a right to demand.



  1. a. ALS, two pages on one leaf, in HP IV-1089-1107. Reproduced by kind permission of the Provost and Scholars, King's College, Cambridge.

    b. MS: these words are underlined three times.

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