[OPE-L:3943] measuring the value of money

A.B.Trigg -Andrew Trig (A.B.Trigg@open.ac.uk)
Tue, 7 Jan 1997 07:31:26 -0800 (PST)

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In reply to Simon (OPE-L:3927):

It does seem to me that there must be a measure of aggregate productive
time if any empirical work is to be done using time series data. This
enables a
measure of the value of money to be calculated (if we follow the "new"
It also potentially enables to construct a Marxian price index. Much of
empirical work use standard price indices which derive from neoclassical
theory -
the intention being to model the changes in utility over time. (e.g. the
index is an approximation of Hicksian changes in utility). If we can
measure changes
in value (labour time adjusted for skills, productivity etc) then could this
an alternative price index? This may be a crazy idea, but any thoughts

One question: to those who prefer to work purely with time series
which are measured in monetary units, in their empirical work. How can
changes due to inflation be dealt with. I have looked at the literature and
it is
never really mentioned up front. I would be interested to know if there is
a convenient
trick or assumption which I have missed.

In solidarity.

Andrew Trigg