Re: (OPE-L) recent references on 'problem' of money commodity?

From: Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Sun Nov 21 2004 - 23:11:07 EST

On Sat, 20 Nov 2004, Paul Bullock wrote:

> Fred, now you are not really answering me.. did you follow my points?

Hi Paul,

Well, I could say that you are not answering my question either.  But
let's not get into a combative mode, and instead try to figure this out

I argued in my next-to-last post that, with respect to the determination
of the MELT, it does not make any difference whether or not credit money
still is tied to gold in some way.  In both cases MELT = MV / L.

So my question to you in my last post - how do you interpret the
determination of the MELT today? - was a follow-up of my previous post.  I
think this is a very important question, and I would like to focus
attention on it.  The MELT is an essential variable in Marx's theory,
i.e. P = (MELT) L, and we need to be able to explain how the MELT is
determined in contemporary capitalism.

But sorry I was so cryptic. Let me elaborate:  Do you think the
determination of the MELT today is the same as in Marx's case of
inconvertible paper money (with paper money representing gold, even though
not convertible into gold at legally defined rates), as Marx analyzed in
the Critique and in Capital?

If not, then how do you think the MELT is determined?

Or, if so, then I have shown (paper attached again) that Marx's
determination of the MELT in this case is equal to MV / L, which is the
ratio that I have argued determines the MELT today, without reference to
gold.  So, once again, with respect to the determination of the MELT, it
does not make any difference whether or not one assumes that gold is still
the fundamental money today.

Paul, I will try get to your other points, as time permits.  But I would
really like to clarify the determination of the MELT.  What do you think?

Thanks very much for the good discussion.


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