Re: [OPE] Jubak, "Fake inflation numbers masked crisis"[MESSAGE NOTSCANNED][MESSAGE NOT SCANNED]

From: Dave Zachariah <>
Date: Tue Dec 09 2008 - 13:19:50 EST

on 2008-12-09 12:51 Paul Cockshott wrote:
> But why should prices remain the same if productivity rises?
> What I was meaning is that the real value of money is the amount of
> labour it will purchase. If there is inflation the value of money
> falls and so the MELT rises. If the MELT rises there must have been
> inflation since the value of money has fallen.

While I understand your last point, I can't see how a rise in
productivity may not also raise the MELT. If productivity rises the
physical NDP grows too, holding labour constant. Why should the market
prices decrease to a level where the monetary NDP is now lower than before?

//Dave Z
ope mailing list
Received on Tue Dec 9 13:26:28 2008

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