[OPE-L:5779] Re: Re:Commodity Money (Questions)

Ajit Sinha (ecas@cc.newcastle.edu.au)
Mon, 01 Dec 1997 16:34:56 +1100

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At 12:46 30/11/97 -0500, Duncan Foley in response to John E. wrote:

>It seems more logical to me to work out the theory of money on the
>assumption of constant returns to scale in the production of the money
>commodity, so there is no complication of rent to be dealt with, and then,
>if necessary, extend it to take account of the rent issue.

I think within the Ricardian tradition, rent should not make any difference
because marginal land, or the marginal mine in this case, would not pay any
rent and it is the marginal mine that would determine the relative price of
the metal. The question is, is Marx's thesis that even marginal land would
pay rent is correct? I think Marx's theory of rent needs a critical
evaluation. I just don't have time for it now though. Cheers, ajit sinha
>Duncan K. Foley
>Department of Economics
>Barnard College
>New York, NY 10027
>fax: (212)-854-8947
>e-mail: dkf2@columbia.edu