At 01:44 ¿ÀÀü 97-05-14 -0700, Ajit wrote:
>What is this "intrinsic value"? Could you explain how do you do this stuff?
>This sounds like nonsense. You can measure the value by prices even when you
>do not know how values determine the prices, how?
>
Chai-on: I can measure value by prices only because I know theoretically
how values determine the prices. We can measure something with its
symptoms provided the symptom mechanism is known to me. Value is
empirically measurable only because we know the relationship between value
and price. We measure values with prices. Fred tried to replace values with
money values on the ground that money values represent the values
proportionately. His problem is that he did not admit a deviation between
the value of money anf the PrPr of money. For him, money is not a commodity
but paper indexes.
I think we are on the same position, however.
Yours,
Chai-on