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

From: Allin Cottrell (
Date: Fri Nov 19 2004 - 20:00:01 EST

On Fri, 19 Nov 2004, Rakesh Bhandari wrote:

> Value is measured in dollars. The question is what determines the
> value of the dollar.

If your first sentence here is true, the answer to the question in
the second is that the value of the dollar = 1, by definition.

In marxist parlance, value is generally measured in hours of
socially necessary labour time.  Price is 'measured' (more properly,
'expressed') in dollars (or whatever national currency unit) and the
price of the dollar is indeed identically 1.0, unless we're talking
about the currency exchanges.

If the real question is 'What determines the amount of socially
neccesary labour time, embodied in commodities, that is commanded in
exchange by 1 dollar?', then there is no simple answer: it depends
on the policies of the Fed and the US fiscal authorities as well as
trends in the productivity of social labour.


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