[OPE-L:5315] Re: OPE-L:5136 - Duncan's reply

Duncan K. Foley (dkf2@columbia.edu)
Thu, 3 Jul 1997 06:42:39 -0700 (PDT)

[ show plain text ]

In reply to Hans' OPE-L 5313:

>In addition to Duncan's proposed mechanisms (1) - (3) in OPE-L 5311
>how credit money can function as a measure of value, I would like us
>also to consider the following mechanism:
>(4) It is the purpose of monetary policy to manage the value of
>money. The Fed is not trying to fix the labor content of a dollar,
>but to maintain prices at a stable level (which means a declining
>value of the dollar as productivity advances).

One question this raises is how, within Marx's theory, the central bank is
able to influence prices. In a gold standard system, for example, it can't,
since money prices are a reflection of gold prices.


Duncan K. Foley
Department of Economics
Barnard College
New York, NY 10027
fax: (212)-854-8947
e-mail: dkf2@columbia.edu