Re: (OPE-L) recent references on 'problem' of money commodity?

From: Allin Cottrell (
Date: Fri Nov 19 2004 - 14:08:18 EST

On Fri, 19 Nov 2004, Rakesh Bhandari wrote:

> At 10:04 AM -0500 11/19/04, Fred Moseley wrote:
>> I have the same  question:  what grounds do we have for supposing that
>> the price/labor-time ratio for that particular basket of commodities
>> determines the MELT?
> First, note that I am specifying a determinant for quantity of money
> in circulation.

Your specification is just: the quantity of money in circulation is
determined by the policy of the Federal Reserve system, which is not
exactly news to anyone.

> For example, Greenspan will now drain liquidity from the economy
> in order to bring the dollar price of the basket of commodities
> down.

If that happens to imply CPI deflation, I don't believe it.


This archive was generated by hypermail 2.1.5 : Mon Nov 22 2004 - 00:00:02 EST