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

From: Pen-L Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Sat Mar 24 2007 - 09:42:22 EDT


Quoting Rakesh Bhandari <bhandari@BERKELEY.EDU>:

> Fred,
> You take M as given. But--to ask a question I asked four or five
> years ago--how do we know that the market prices of the constant
> capital and wage goods bought directly and indirectly with that
> initial M were governed by or indeed could have been governed by the
> same prices of productions that you derive via your sequential,
> "monetary-macro" method predicated on the labor theory of value?

Because the M that is taken as given is equal to the long-run
center-of-gravity prices of the means of production and means of
subsistence, and these long-run center-of-gravity prices are eventually
explained as equal to prices of production.

Comradely,
Fred

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