john ernst asked me about my statement:
> >I have said this before [either I am wrong or nobody cares] but the
> >notion that value is necessarily a fixed quantum may be true in
> >equilibrium or near equilibrium conditions, but not otherwise.
> I am not sure what your last sentence means. Clearly, in non-equilbrium
> conditions, price movements can take things in a lot of differenct
> directions. Maybe you can say a bit more.
When competition is not strong, firms are not forced to revalue their
equipment. They can maintain old methods of production rather than
scrapping them. In my Marx book, I extend the notion of fictitious
capital to include such fictitious values. This stituation makes it
seem as if values are in balance.
Where competition is strong and technological change rapid, values are
wiped out quickly and firms cannot recover their values.
I am in a rush now and cannot expand upon this at this moment, but I can
go further if anyone is interested.
-- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 916-898-5321 E-Mail email@example.com