Re: [OPE-L] Where does the money comer from : was Why aren't non-labourers sources of value?

From: Gerald_A_Levy@MSN.COM
Date: Wed May 04 2005 - 08:37:40 EDT

> There was clearly a mechanism by which the credit system displaced gold.
> The mechanism could not have been the issue of paper money as suggested
> by Gerry as the 1844 bank act set a tight limit on the fiduciary issue
> of notes, other notes had to be backed by gold.

Hi Paul C:

I think one has to be careful not to substitute a contingent, historical
explanation for a theoretical explanation.  After all, eventually even in
the UK under the gold standard, that "tight limit" was removed, wasn't it?

The point I was suggesting was simply that there doesn't _have to be_ a
"tight limit" between the quantity of gold and the accumulation of
capital.  _For instance_,  paper currency _can_ be issued by the state
which alters that relation.

The point that you make about Ricardo v. Marx is interesting but
undeveloped:  what specifically did you find unconvincing about
Marx's critique of Ricardo re the exchange value of gold?  Is
there an advantage to Ricardo's conception?  If so, what is it?

In solidarity, Jerry

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