[OPE-L:4670] Re: Re: Re: Re: Re: Re:Fiat money andTransformation

From: Paul Cockshott (paul@cockshott.com)
Date: Fri Dec 08 2000 - 11:07:13 EST

On Fri, 08 Dec 2000, you wrote:
> Paul Cockshott wrote:
> > On Wed, 06 Dec 2000, you wrote:
> >
> > > You're right, in that fiat money is not a produced commodity and
> > > doesn't participate in any equalization of the rate of profit,
> > > unlike Marx's commodity money.
> > >
> > > Allin Cottrell.
> _________________
> But the logic seems to be incomplete. The question, first of all, is how is the
> value of fiat money determined? If you determine its value by taking the GDP
> and dividing it with total money supply, the problem you will have is that you
> cannot claim the the GDP measured by the prices assumed to be proportional to
> value and the GDP measured by the prices of production have any reason to
> remain the same. So, in effect, it amounts to the imposition of the same old
> condition that total values equal total prices of production-- thus no more
> mileage is gotten by this. Cheers, ajit sinha
I agree that it amounts to the same thing, but it does at least enable you to
get out of pointless arguments as to whether the conditions of production in
industries producing the money commodity are relevant.

Paul Cockshott, University of Glasgow, Glasgow, Scotland
0141 330 3125  mobile:07946 476966

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