On Tue, 20 Aug 2002, mongiovg wrote: > I agree that to serve as MONEY a commodity must be scarce. But it need not be > scarce to serve as a NUMERAIRE. A subtext of this discussion is whether it is > useful (or possible) to discuss the mechanisms that connect prices, > distribution and the technical conditions of production separately from the > role money plays in a market economy. I've argued that it is both possible > and useful. Naples maintains that it is not possible, but her (and other) > efforts to integrate the two kinds of issues have, on the whole, not been very > successful. > But real world prices are exchange-ratios with money. If real world prices are to be explained, then there must be a connection with money. Sraffa's theory has no such connection, and Marx's theory does, in the very first chapter, and emphasized throughout. Therefore, Marx's theory explains real world prices, and Sraffa's theory does not. Fred
This archive was generated by hypermail 2b30 : Sat Aug 24 2002 - 00:00:03 EDT