RE: A theory of profit.

[Moreno Villanueva <movi273@xxxxxxxxxxxxxxxxx>]

Some comments:

 I don't understand your idea of profit. I just know
profit=(price)(quantity) - total cost, I mean
profit is a kind of surplus as a consecuence of participating in any kind
of market (real or financial).
For example, in the derivative market, you can get some profit if you bet
against the market, considering your expectatives about the behavior of the
"x" market. Maybe you are not going to use money at all, but you are using
"contracts" and transfering flow of funds between accounts.(not money but
transferences).

Wendy Moreno

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> De: Harry Veeder <veed0001@xxxxxxxxxxxxxxxx>
> A: POST-KEYNESIAN THOUGHT <pkt@xxxxxxxxxxxxxxxx>
> Asunto: A theory of profit.
> Fecha: sábado 31 de julio de 1999 7:17
>
>
>
> Earlier I wrote,
>
> >Subject: Re: Uncertainty and Liquidity Preference
> >Date: Fri, Jul 23, 1999, 1:04 pm:
> ><snip>
> >In the above, real only means *material* costs. That is money as a means
of
> >exchange reduces the *material* costs of transactions. But what about
the
> >labour transaction costs of money? It seems to me these are real and
exist
> >in terms of the labour required to process money. So in prefering money
to
> >tons of steel as a means of exchange there is trade off to be made
between
> >bodily skills required to move steel and mental skills required to move
> >money. Mental skills appear as accountant fees, lawyer fees, brokerage
fees,
> >bank service  charges, computer skills, etc..... If a person running a
> >businesses performs most of this tasks himself his labour fee will
reflect
> >these transaction costs.
>
> It occurred to me that for the one person business described above,
profit
> could be explained as the sum of money which covers the transaction costs
of
> using money.  A monetary economy generates a market for monetary profit
> because the*use* of money, relatively speaking, generates costs for
> producers and benefits for consumers. Or in other words, profit is the
> equilibrium price for using money as means of exchange.
>
> Comments?
>
> Harry Veeder