[OPE-L:7402] [OPE-L:933] Re: Marx's concept of price of production

Gerald Levy (glevy@pratt.edu)
Sat, 1 May 1999 06:28:28 -0400 (EDT)

---------- Forwarded message ----------
Date: 01 May 99 12:26:08 IST (+0530)
From: Ajit Sinha <sinha@cdedse.ernet.in>

I don't think you understood any of my questons. So let me try to
put it in a different way:

By "prices" do you meand exchange ratios between different
commodities or not? For example, 1x exchanges against 2y. If by
prices you mean exchange ratio of commodities with respect to
"money", then is your "money" a commodity or not? If your "money"
is not a commodity, then how is its exchange relation to other
commodities such as x,y,z are determined? I'll leave it here for
now. I intend to show that most of the people are amagingly muddled
in their understanding of the problem of value; and this is due to
mixing up of entirely different problems into one.
Cheers, ajit sinha

> Re Ajit's [OPE-L:928]:
> > What do you mean by "input prices" and "output prices"? What is
> > price?
> In the context that I was referring to, I intended "input prices"
> and
> "output prices" to mean *market prices* for inputs (c & v) and
> outputs
> (the commodity output).
> > How can price be defined for "within a period"?
> I'm not sure what you are asking. It seems to me that a "period"
> is an
> abstract, logical unit of time. As we move to a lower level of
> abstraction, we have to convert this concept into a unit of
> *real* time,
> e.g. a year.
> For the sake of discussion, I'll refer to a "period" as
> corresponding to
> a 1 year period (I think this makes sense given Marx's previous
> way of
> defining constant circulating capital).
> > If one is
> > talking about changes in prices over a period of time, then
> what
> > does this changes in prices mean? If all 'prices' have doubled
> due
> > to doubling of paper money supply, does this mean changes in
> > prices?
> If you are asking whether inflation will occur under these
> circumstances,
> then the answer is yes.
> I think, though, that the subject of inflation also has to be
> explained at
> a more concrete level of abstraction. E.g. we need to explain how
> the
> dynamics of (the changing form of) competition can lead to
> changes in
> average prices.
> Once one is talking about paper currency, one has already assumed
> the
> state-form. The relationship, then, between state monetary policy
> and
> price (in)stability needs to be explained.
> In solidarity, Jerry