Re: [OPE-L] questions on the interpretation of labour values

From: Ian Wright (wrighti@ACM.ORG)
Date: Mon Mar 19 2007 - 12:36:38 EDT 

> The problem is not so much with assuming that things have prices
> at one instant in time, and in principle deriving differential
> equations to predict the changes in the next period.
> That can all be done using flow rates. The problem comes
> when you tie the idea of 'empirically given' to the term
> 'stock of money capital'. Then it is no longer a question
> of empirical prices at one point in time, but an attempt to
> construct a stock quantity, my argument is that it is unclear
> what is meant by that stock quantity.

Do you mean it is unclear in practice, due to the variety of
mechanisms by which production is funded, or that it is unclear in
theory, due to some intrinsic problem with the concept "stock of
money-capital"?

It's not too difficult to construct a dynamic model in which the
traditional static model of linear production theory is a fixed point.
Assuming conservation of money and simple reproduction the stock of
money-capital, and its relationship to the total money in circulation,
is well-defined.

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