Re: (OPE-L) Re: Dynamic value and natural price

From: Philip Dunn (pscumnud@DIRCON.CO.UK)
Date: Tue Nov 04 2003 - 10:10:28 EST

Quoting Paul Cockshott <wpc@DCS.GLA.AC.UK>:

> Look at the accounts of the banks and see what portion of the wage bill is
> met
> out of bank charges. For the UK at least it is not enough to cover wages.
> The wages are met out of  a portion of the interest payments charged.

Hi Paul

I was not thinking of bank charges. The idea is that the spread of interest
rates generates sales revenue for the bank.

The following comes from 'Concepts, Sources and Methods'
"The output of financial institutions has always presented diffculties of
measurement.  Each successive revision of the system of economic accounts has
come up with a different proposal for measurement.  Neither national
accountants nor economists seem entirely clear what it is that banks and
financial intermediaries produce.  SNS93 is no exception. It has proposed a
measure called _financial intermediation services indirectly measured_ (FISIM).
 Under this proposal the _value added_ of financial institutions is seen as
intermediation -- that is bringing together borrowers and lenders.  Neither
borrowers not lenders themselves are deemed to add value."

There is more in the PDF -section 2.16


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