> 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?
>
I would say that since all goods are purchased for money, the stock of
capital must be revalued in the way I suggested in (1), no matter what the
cause of the change. However, we have a difference on the meaning of the
term 'the value of money'; I would calculate the 'monetary expression of
labour' (which I take to be the inverse of what you mean by the value of
money) as the ratio on 1 January 1997 between the labour-time value of the
stock of all commodities in circulation at that time, and the money-price
of the stock of all commodities in circulation at that time. I think that
you would calculate it as the ratio between the current labour of the
period 1 January 1997 to 1 January 1998 , and the money-value-added of that
period.
Cheers
Alan