In [3754], Ian wrote:
> at each stage of the iteration you have
>inconsistent input and output prices, so the rate of exploitation will
>change as you go through the iteration. It is certainly only a mathematical
>device (that is, the real economy does not go through the iterative
>process) but I don't see that as a problem,
>cheers,
>Ian
>
Dear Ian,
Well, in the iteration, you have no right to change the rate of
exploitation, as it is qualitatively determined in the sphere of production.
In the result of the iteration, the rate of exploitation should not be
altered. The iteration is just a process of changing value and price
accounts. Yet, the s/v is to remain the same because the value accounts must
change proportionately. If v changes into v*m, then the s, too must change
into s*m. This is because the v+s is to be proportionate to the amount of
direct labor. In the iteration, you can only change the calibration of the
measuring rod of the direct labor, not the division ratio between v and s. I
myself regard the iteration as a sort of rubbish.
Since, at each stage of the iteration you have inconsistent input and output
prices, you may well have different, distinct price systems. But why is the
rate of exploitation to change? YOU CAN CHANGE INPUT AND OUTPUT PRICES
PROVIDED THAT THE RATE OF EXPLOITATION IS NOT ALTERED.
Yours,
Chai-on
Faculty of Economics,
Chonnam National University,
Kwang-Ju, 500-757,
S Korea
Tel +82-62-520 7329
Fax +82-62-529 0446
E-m: conlee@chonnam.chonnam.ac.kr