Fundamental value: a category in transformation

Dick Bryan and Mike Rafferty

Fundamental value is a canonical category in both Marxian and neo-classical economics. In application to finance and financial crisis, it is laden with complexity. For Marxists, it has underscored a focus on the distinctions between production and circulation, real and fictitious capital. These debates have dominated Marxian responses to the financial crisis. In mainstream finance and economics, the term has undergone transformation and historically driven adaptation. Marxian analysis could fruitfully follow this lead. This paper identifies that transformation as an expression of capital’s transforming calculation project. As capital becomes more liquid, the concept of fundamental value itself must embrace liquidity, yet, in embracing liquidity, fundamental value loses its established definitive capacity.