Realisation an seigneurage

From: clyder@GN.APC.ORG
Date: Tue Apr 29 2003 - 06:02:24 EDT

There has been much debate on ope over the years on whether
value exists objectively prior to being validated by sale.

The point made by some participants has been that it is money
which is the objective social validation of socially necessary
labour time, and until the commodity is translated into money
the labour time in it can not be said to be socially necessary.

I want to consider the obverse situation - what validates
the money issued by the state bank and or the credit system.

The initiation of state banks gave rise to the initial illusion
that they could create value - an illusion repeated in every
credit boom. In practice however the issuers of paper currency
found that the currency depreciated on excessive issue.

One take on this would be to say that such currency is a claim
on the flow of labour being performed, and when the rate of
expenditure of the currency exceeds the labour being performed
the value of the currency, falls because the share of social
labour it commands falls.

I was wondering if there is a literature on seigneurage from
the value form theorists.

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