Re: [OPE-L] Ajit's Paper on Sraffa and Late Wittgenstein

From: Ian Wright (wrighti@ACM.ORG)
Date: Fri Jun 09 2006 - 16:13:41 EDT

Hi Allin

I elaborate on the below in my response to Paul.

> To put it differently, r = 0.1 is just a wildcard, undefined,
> unless I know the period to which this interest rate applies.

A price has got nothing to do with time. The price of money-capital
does not tell us about profit income (or interest) received in a
period. A price is an exchange rate against money. A price is a
label, a nominal, not an actual, quantity of money. Only when actual
quantities of money-capital are supplied is actual interest received.
This is when the time comes in, because quantities are supplied, or
"loaned", during a period of time.

I hope you can see that this is not economic nonsense.

r is very clearly defined in the circular flow. It is Sraffa's r. It
also happens to be the price of money-capital and equal to S/(C+V).

Best wishes,

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