[OPE-L:1145] Re: LVB3:What Money is Worth

Allin Cottrell (cottrell@wfu.edu)
Tue, 20 Feb 1996 06:26:24 -0800

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Alan:

[If] "the value of *money* retains its Ricardian definition" [as] "the
labour embodied in a pound" [then] "price-value differences cannot even be
conceptualised, let alone measured."

I quarter of wheat requires 10 hours for its production. I ounce of gold
requires 5 hours for its production. I quarter of wheat sells for 1
ounce of gold. Here is an obvious conceptualization of a price-value
difference. Price would accord with value if the wheat sold for 2 ounces
per quarter, so that 10 hours embodied in wheat exchanged for 10 hours
embodied in gold. What's the problem supposed to be?

Allin.