Re: [OPE-L] (OPE-L) recent references on 'problem' of money commodity?

From: Akira MATSUMOTO (amatsu@LL.EHIME-U.AC.JP)
Date: Thu Dec 02 2004 - 20:41:49 EST


At 4:54 PM -0800 04.12.2, Rakesh Bhandari wrote:
>
>
>Analysis should focus on the conditions under which the dollar, as
>inconvertible fiat money, can serve (or continue to serve) as measure
>and store of value and means of international payment. Insisting that
>nothing has changed, that underneath all the monetary turbulence
>money is still the gold commodity militates against analysis of the
>ways in which capitalism has changed under the weight of two world
>wars and hegemonic displacement via catastrophic violence.
>

I wonder about  dollar as measure and store of value. Indeed, dollar is a kind of credit money, but in even this case dollar have to be backed by any valuable substance as currency. This is also paper money.  Any substitutes can serve any functions of money, as long as they represent any valuables as measure of value. we don't have to forget that a thing which serve measure of value substantially, must move backward to substitute under the modern credit system.

bye



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Dr. MATSUMOTO, Akira

Professor on Money and Banking
Department of Comprehensive Policy Making
Faculty of Law & Letters, EHIME University

Matsuyama, Ehime
790-8577,  Japan
Tel/Fax:+81-89-927-9237(office)
E-mail: amatsu@ll.ehime-u.ac.jp
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