Re: (OPE-L) Ajit's paper

From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Tue Jun 01 2004 - 06:12:38 EDT


Rakesh, I have no idea what is this about. Can we
stick to the issues we are debating? Cheers, ajit
sinha
--- Rakesh Bhandari <rakeshb@STANFORD.EDU> wrote:
> Ajit,
> the measuring rod does not remain invariant to the
> distribution of
> income only if the measuring rod, money, belongs in
> the system in
> which the rate of profit is equalized, that is, if
> money is like most
> other commodities in that  (as I have argued) its
> supply can be
> regulated such its production yields neither more
> nor less than the
> average rate of profit over time. All the apparent
> changes in the
> size of the pie from mere changes in distribution
> only result if one
> assumes that the measuring rod should belong to the
> system in and
> over which the rate of profit is equalized. But
> money does not belong
> there. Malthus was able to create problems for
> Ricardo because he got
> Ricardo to accept that gold is like all other
> commodities in that its
> production will tend to yield the average rate of
> profit over time.
> But  Ricardo realized that gold was not like other
> commodities. I
> have already quoted Ricardo's recognition of this,
> but he did not
> dwell on it (see p. 193-4 of Sraffa's ed. of
> Ricardo's Principles).
> There was no reason to search for an invariable
> measure of value.
> Malthus burdened Ricardo with a false problem.
> Rather than negating
> the question, Sraffa tried to solve it with the
> invention of a
> standard commodity which has no real world relevance
> (it changes with
> each technical change; it is not money; it's only an
> example of
> technical virtuosity and thus can only have the
> appeal of esoterica).
> Sraffa's time was wasted by Ricardo's inability to
> shrug off Malthus'
> baseless assumptions about what you call the
> measuring rod. Michele
> Naples first made this argument; David Yaffe had
> intimated it. I have
> added to it in my own way, so has Fred Moseley.
> You're not grappling
> with it.
> Yours, Rakesh





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