[OPE-L:3844] Re: Re: Re: Re: m in Marx's theory

From: Duncan K. Foley (foleyd@cepa.newschool.edu)
Date: Mon Sep 18 2000 - 22:41:47 EDT

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I'll think some more about Paul C.'s comments, and have one remark in

> > > 4) This further suggests that the determinants of the value of money
>> > in contemporary capitalism lie in the speculative valuation of the
>> > government debt on asset markets. (Everybody I've tried this on has
>> > doubts about this idea.) It requires one to believe that, for
>> > example, workers, in bargaining over the money wage, are implicitly
>> > valuing the state debt as well as their own labor-power.
>This speculative valuation can only affect the relative values of different
>currencies. Abstract from multiple currencies and in that case with what
>would governement debt be speculated in. Speculation on government bonds
>alters the price of the bonds, relative to other commodites, but the prices
>of the bonds and the prices of other commodites are still denominated in
>money, so this will not affect the value of money relative to other

It's clear enough that speculation plays a role in the relative
valuation of currencies. But at some point, it would have to play a
role in the valuation of each currency against commodities, including
labor-power, wouldn't it? It's rather strange to think of a worker
selling her labor-power speculating on the value of the dollar, but
in extreme inflationary situations, this must happen.


Duncan K. Foley
Leo Model Professor
Department of Economics
Graduate Faculty
New School University
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