Re: (OPE-L) Ajit's paper

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Sun Jun 06 2004 - 18:27:41 EDT

> >  As soon as you have multiple commodities with
> > prices then one has
> > ratios between these prices, but that is not to say
> > that price is itself
> > necessarily a relative concept. It certainly is
> > within the problematic
> > of the commodity theory of money, but if one is
> > dealing with pure
> > fiat money, then one has a measure that is outside
> > of the conditions
> > of production, and price is no longer a ratio of
> > exchange values.
> _______________
> But where do fiat money get their value from? And all
> the commodities still have their relative prices even
> in the case of fiat money. Cheers, ajit sinha
My concern here is Steadmans arguments about the role
of the numeraire in looking at price/value correlations.
I want to emphasise that the essential information content
of a price system is the set of relative prices, and that
in all modern economies the numeraire is not itself a
commodity, and thus the issue of the numeraire is a red
herring when looking at the angle between the price and
value vectors.

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