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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