Paul C
> The basic mechanism of the law of value is that when commodities
> sell below their value, labour is withdrawn from their production
> and consequent shortages bring the price back into line with
> their value.
I agree with this.
Paul C
> Prices are only valid in the
> long run when they are conformity with values, and the law of
> value constantly drives them into such conformity.
It is indeed the postulated mechanisms by which the law of value bites
back against the recalcitrant price system in which I am interested. They
are, in fact, market mechanisms, that induce not only the withdrawal of
labour for unsuccessful sectors, and direct it to others, but also induce
systematic changes in labour itself, including perhaps changing its
productivity. The price/Money system and the value system are in fact not
separate systems at all, nor is there a one way 'causal' relation from
value to price. They are constitutive moments of the same, single, system.
(Which is why I cannot understand Andrew K's apparent exasperation with the
ideal-real value string).
Michael
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Dr Michael Williams
"Books are Weapons"
Department of Economics Home:
School of Social Sciences 26 Glenwood Avenue
De Montfort University Southampton
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Kents Hill
Milton Keynes
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tel:+1908 834876 tel/fax: +1703 768641
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email: mwilliam@torres.mk.dmu.ac.uk mwilliam@compuserve.com
http://www.mk.dmu.ac.uk/~mwilliam