In 4009, Ajit wrote: > My sense is that >Marx thought that properties derived from the reproduction schemas will not be >affected even if the exchange ratios where different from the value ratios, Marx may have been wrong. The reproduction schema may not be immune to Rosa Luxemburg's criticism unless we allow for the possibility of exchange at prod prices, instead of values. In my reply to Paul Z, I noted that Grossmann and Mattick Sr had made this point and that both thought that Bauer's reply which continued to assume exchange at value was not persuasive. > > >I would say, you are right. There should be a price-value deviation >for the money >or the gold commodity too. But if you recall Bortkiewicz-Seton types >formulations, >they construct their simultaneous equations in terms of labor values >and attach the >unknown deviation factors x, y, z, etc. to them, where there are n numbers of >x,y,z, etc. and n+1 unknowns; n numbers of x,y,z... and one general >rate of profit. >So if we solve the system by putting say x = 1, then that implies that the >commodity associated with x, say gold commodity, has no value price >deviation. But >this, of course, is an arbitrary decree. So i agree with what you say above. Having put gold into the "transformed" schema (they are not Marx's) reveals how little these theorists understood Marx even if they could handle homogeneous linear equations and matrix algebra in the delusive seach of a determinate solution to relative prices. If gold is put into transformation schema, then its value and price should be expected to change interperiodically, thereby destroying its function as a theoretical reference point in Marx's system. The monetary expression of labor time, m, and the value of money are all given and fixed throughout the three volumes of Capital. No theoretical investigation of the effects of changing labor productivity on the value magnitudes is possible without such a theoretical reference point. Money is kept not only outside the transformation exercise, it is kept outside of time altogether. All the best, rakesh
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