Re: [OPE] C&C's model and Behavioural economics (continuation).

Alejandro Agafonow wrote:
>
> Paul C.: “Unexercised claims against value only build up if you have
> transferable monetary units.”
>
>
>
> Not only if we have transferable monetary units. Unexercised claims
> against value is possible whenever undervaluation of products in terms
> of labour content occurs, i.e. whenever the use-value in some lines of
> production are not in a common proportion to the social labour time
> expended (your reading of Strumilin).
>
>
>
> Of course, in absence of transferable monetary units the
> disequilibrium is limited compared to capitalism. But since the
> planner’s decisions are limited by the feasibility of the combination
> of factors of production (heterogeneity of capital), it is conceivable
> a state where it is impossible some combinations to attend new lines
> of production that fit consumers demand.
>
>
>
 Yes but that is a much more localised problem for a socialist economy.
What I was addressing was the problem of 'monetary overhang' which
developed in the late Soviet economy, where rouble balances in savings
accounts and rouble holdings were high relative
to the flow of goods onto the consumer market ( valued in administrative
rouble costs).

This overhang was a major factor in the apparent shortages, and stemmed
from both an inadequate tax system, and a
upward rigidity in administered prices.

With labour value accounts it can in principle be dealt with by having
dated accounts - like the budgets that many organisations
run, where surpluses in one year can not roll over to the next.
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Received on Thu Oct 30 07:03:40 2008