From: Alejandro Valle Baeza (avalleb@prodigy.net.mx)
Date: Tue Feb 11 2003 - 15:09:15 EST
Jerry, perhaps this is a response for your question:
"
Re: Comparative advantage discussion
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Fri, 13 Nov 1998 13:23:14 -0800
Jim Devine (jdevine@popmail.lmu.edu)
>Now, if we assume a different theory of money, like that found in
>CAPITAL or in THE GENERAL THEORY, Ricardo's outcome will be
>completely different. As gold flows out of England, bank reserves
>decline, interest rate increase, investment declines and output
>declines. England experiences a chronical trade account deficit.
>Portugal on the other hand receives gold, which makes bank reserves
>increase, lowering interest rates, increasing investment and output.
>Portugal experiences a chronical trade account surplus and a capital
>account deficit as capital flows into England attracted by the higher
>interest rate. England, ironically, becomes the chronically indebted
>country and Portugal the chronically creditor country.
>A different theory of money therefore destroys the happy ending of
>Ricardo's model, and absolute rather than comparative advantage
>determines the direction of trade benefits.
this theory was well-analyzed by Anwar Shaikh, both in SCIENCE & SOCIETY
and in a book edited by Ed Nell titled GROWTH, PROFITS, AND PROPERTY.
Jim Devine jdevine@popmail.lmu.edu &
http://clawww.lmu.edu/Faculty/JDevine/jdevine.html
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----- Original Message -----
From: gerald_a_levy
To: ope-l@galaxy.csuchico.edu
Sent: Tuesday, February 11, 2003 4:51 AM
Subject: [OPE-L:8453] Re: Comparative advantage: Comparative exploitation
Re [8403]:
There was an interesting comment on the Kohler paper on the
Post-Keynesian Thought (PKT) list by Kazuhiro Kurose (from
the Graduate School of Economics and Business Administration
at Hokkaido University in Sapporo, Japan):
http://csf.colorado.edu/mail/pkt/2003I/msg00298.html
He claims that if instead of a two-good model, another good
(such as gold) is adopted as numeraire or if there is a three-
good model then the principle of comparative advantage lacks
generality. Kurose doesn't cite a source, though, for this
conclusion. Does anyone know of such a source by Kurose
or anyone else?
Solidarity, Jerry
An article by Gernot Kohler:
"Comparative advantage: Comparative exploitation"
http://www.atimes.com/atimes/Global_Economy/EA29Dj02.html
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