[OPE-L:7546] Re: Re: Re: RE: Fred's remarks on Marx, Sraffa & Rents

From: Rakesh Bhandari (rakeshb@stanford.edu)
Date: Mon Aug 26 2002 - 12:33:37 EDT


>
>The gold industry can not be the key issue here. Assume state fiat
>money instead if that is a problem.


Paul (C),
It was Ajit and Allin who both insisted that since Marx had a 
commodity theory of money, he could not leave gold out of the 
transformation process. But to do so would be inconsistent with 
Marx's own theory.

Following Grossmann, I of course think that Marx does a lot by 
methodological fiat in regards to the money commodity.

1. he fixes its value

2. he fixes that its purchasing power will be determined by this 
fixed value (I don't agree with Naples and Fred that commodity money 
is like any other commodity in that its long term "price" would tend 
to be determined by  either its direct or transformed value since a 
condition of possibility for such long period, value-determined 
'equilibrium' is the ability to affect the supply of a commodity 
through changes in the output decisions of capitalists).

3. the MEL is thus held constant throughout all three volumes of *Capital*

All the best, Rakesh


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