Re: (OPE-L) Re: Dynamic value and natural price

From: Philip Dunn (pscumnud@DIRCON.CO.UK)
Date: Tue Nov 04 2003 - 10:10:28 EST


Quoting Paul Cockshott <wpc@DCS.GLA.AC.UK>:

>
> Look at the accounts of the banks and see what portion of the wage bill is
> met
> out of bank charges. For the UK at least it is not enough to cover wages.
> The wages are met out of  a portion of the interest payments charged.
>

Hi Paul

I was not thinking of bank charges. The idea is that the spread of interest
rates generates sales revenue for the bank.

The following comes from 'Concepts, Sources and Methods'
http://www.statistics.gov.uk/downloads/theme_economy/Concepts_Sources_&_Methods.pdf
"The output of financial institutions has always presented diffculties of
measurement.  Each successive revision of the system of economic accounts has
come up with a different proposal for measurement.  Neither national
accountants nor economists seem entirely clear what it is that banks and
financial intermediaries produce.  SNS93 is no exception. It has proposed a
measure called _financial intermediation services indirectly measured_ (FISIM).
 Under this proposal the _value added_ of financial institutions is seen as
intermediation -- that is bringing together borrowers and lenders.  Neither
borrowers not lenders themselves are deemed to add value."

There is more in the PDF -section 2.16

Phil


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