Finance and the Cambridge equation: Again on the rate of profits of financial intermediaries

In this rejoinder to Man-Seop Park (), I show that his critiques directed at the model I proposed in Ciccarone (2004) are not well founded.. I also demonstrate that his own definition of the income of financial capitalists (and of the rate of profits) is not general, and that the assumptions that must be made to obtain it are difficult to accept and are unable to restore the ‘monetary’ characteristics of the Cambridge economy. Finally, I show that my 2004 conclusions would be reached even if that definition were employed. It follows that the problem singled out by MSP does not lie in the income of financial intermediaries, but in the exogeneity of the full employment rate of growth. This is consistent with my 2004 contribution, where I highlighted the role of finance in influencing the rates of growth and of profits, and the instability of the full employment path.