This chapter replaces the simultaneous equations approach of General Equilibrium theory with an economically superior and more general formalism based on Marx′s analysis, removing the arbitrary and restrictive assumptions needed to obtain a simultaneous solution. Its values, prices and rate of profit are in general different from those predicted by simultaneous models. Former debates, which assume a common framework, are therefore superseded. There are now two frameworks; one confirms Marx′s thought and one falsifies it; one expresses the inherent phenomena of a capitalist economy, the other assumes they do not exist.
