[OPE-L:7068] a value theory of exchange rates?

From: gerald_a_levy (gerald_a_levy@msn.com)
Date: Thu Apr 25 2002 - 08:17:47 EDT

In [7028] Simon asked:

>>  What determines exchange rate movements?>>

In  [7035] Diego replied:

> Again, I think we have a good approach to the understanding of the *long-term trend* of exchange rates (two Spanish dissertations, working on Shaikh's lines, should be added to the literature on this topic: Mejorado, Ascension (1996): Los determinantes micro y macroeconomicos del deficit comercial espanol (1954-1994), Tesis Doctoral, Madrid: Universidad Complutense. And Cabrera, Oscar (2002): La competencia internacional: factores explicativos de la competitividad industrial en los paises del mercado comun centroamericano, Tesis doctoral, Universidad de Sevilla). Of course, exchange rates are a special case of relative prices, i.e. relative values, so that their movement is determined by the movement in the relative quantities of labor needed in two different countries in order for each of them to reproduce the same basket of commodities (representing the composition of the worldy-traded basket of commodities). <

This seems to me to be broadly in agreement with Simon's
comment in [7060] that: "...(perhaps) to understand exchange
rates as the ratio of different national values of money". 

When you (Simon) write the above, what role (if any) do you
assign to individual nation *states*  in the establishment of exchange
ratios?  Doesn't an understanding of how exchange rates are
determined in contemporary capitalism require that we comprehend
the role of the state, central banks,  international agreements among 
states, etc.?  

When you (Diego) write that the Mejorda and Cabrera dissertations
are "working along Shaikh's lines",  are you referring to Anu's
writings on international values and trade or are you referring to
some other writings of his?   How would you compare his writings
on this subject to that  of  Guglielmo (Mino) Carchedi in _Frontiers of 
Political Economy_ (London, Verso, l99l)?

To all: what are some other recently-written articles and books by 
Marxists on the subject of exchange rate determination that we should 
take note of  and critique?

In solidarity, Jerry

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