1. I have argued that there is an inconsistency in your
interpretation of the valuation of the stock and the flow
of constant capital - that the flow of constant capital
(the transferred value) is valued at current (beginning
of period) costs and the stock of constant capital is
valued at historical costs. At the end of your post,
you say that "the value transferred [the flow of constant
capital; FM] is altered by price / value deviation."
This left me wondering: according to your interpretation,
is the value transferred also altered by increased productivity
in the production of the means of production, or does this flow
remain at historical costs, as you interpret the stock of
constant capital?
2. In the case of a change in the value of money (e.g. a
reduction), is the stock of constant capital (the
denominator in the rate of profit) revalued in current
costs or does it remain valued in historical costs, as in the
case of increased productivity? Similarly for the flow of
constant capital (or the value transferred): is this flow
revalued in current costs or does it remain valued in
historical costs as a result of a reduction in the value
of money?
Thanks in advance for your clarification.
Comradely,
Fred