At 10:13 ¿ÀÀü 97-04-23 -0700, John wrote:
>In the 2-commodity world Ajit and Andrew are discussing, it
>would seem possible to assign "$" prices in one period such
>that the unit prices of each commodity do not change as
>inputs become outputs. Given production in a subsequent
>period, Andrew's point would seem valid. If not, again,
>we have to ask how are we to deal with "real" prices
>as opposed to mere relative prices in a Sraffa system.
>John
Chai-on:
What is "real price"? The relative exchange-value between the 2 commodities
is the real price whereas the $price is a nominal price. At the moment,
however, the nominal price is irrelevant.
Cheers,
Chai-on