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Dear Costas
>In the messages by Akira [OPE-L:2212] and Lefteris [OPE-L:2221] there seems
>to be a misunderstanding. I have no doubt that, if the value of gold
>declined, other things equal, the price level would rise and so would the
>quantity of gold in circulation. This result would also be perfectly
>acceptable to quantity theorists - Ricardo spelt it out very clearly.
This involves the definition problem. If we define the QMT as the followings,
*The quantity of money in circulation regulates the value of money or the
changing money amounts in circulation leads to the price fluctuation
proportionally*
This is quite different from Marx's view.
When Marx's theory says the changing of gold value lead to the price
fluctuation, this fluctuation isn't caused from the changing of the
quantity of money in circulation, but the changing of exchange rate between
money and commodities by the change of value.
After the event it apparently seem to be caused by the increase of decrease
of money amount but the theoretical nature is quite different.
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MATSUMOTO, Akira
Visiting Scholar
Department of Economics,
University of California, Riverside
1150 University Avenue
Riverside, CA 92521-0427 USA
Phone 909-787-5037x1575 or X1570
Fax 909-787-5685
Email: akiram@mail.ucr.edu
________________________
Associate Professor on Money and Banking
Department of Comprehensive Policy Making
school of Law & Letters
EHIME University
Matsuyama, Ehime
790-8577, Japan
Tel:+81-89-927-9237(office)
Fax: +81-89-927-8916
E-mail: amatsu@ll.ehime-u.ac.jp
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