Social Sciences in China (Chinese Edition)

No.11, 2017

Capital Reflow Rule and the Realization of Social Reproduction

(Abstract)

He Ganqiang

Marx’s discussion of the simple or expanded reproduction of social capital and circulation is linked to the capital reflow rule. The realization of social reproduction requires that the product value structure of aggregate social production must have a certain proportional relationship between the two major categories. Further, there should be a balance between the quantity of money used for the renewal of fixed capital and materials and the quantity of commercial items representing depreciation funds; between the corresponding fixed capital and liquid capital; and between monetary accumulation and actual accumulation for supplementary constant and variable capital in expanded reproduction. The capital reflow rule is the expression of the realization of social reproduction in the sphere of circulation. This provides important methodological guidance for our understanding of the laws of the macrooperation of the socialist market economy.