Re: Price vs. Value Theory

[Warren Mosler <mosler@xxxxxxxxxxxxxx>]

The $US, for example, is a public monopoly.
The govt. (or its designated agents) as sole supplier
of that which it demands
for payment of taxes it levies is 'price setter.'

see 'A General Framework for the Analysis of
Currencies and Other Commodities at www.mosler.org

Warren Mosler

--- Gunnar Tomasson <gunnar.tomasson@xxxxxxxxxxx>
wrote:
>
> The following Gang8 exchange of today's date may be
> of interest.
>
> Gunnar
>
> ********
>
> Geoffrey Gardiner:
>
> The value of dollars and the value of gold are both
> concepts of the human mind. They have no reality in
> nature.
>
> Gunnar:
>
> Economic Scholars will respond to - "refute" in
> their vocabulary - your point as follows:
>
> People would not hoard Dollars/Gold at Fort Knox
> UNLESS it gave them PSYCHOLOGICAL satisfaction to do
> so.
>
> As Economic Scholars, we have no business belittling
> the psychological quirks that make people do what
> they do.
>
> By their own lights, such Economic Scholars are not
> being dumb - their viewpoint is an integral part of
> the Price-Theoretic approach developed by
> mathematical economists in the last third of the
> nineteenth century as substitute for that of
> Classical Value Theory.
>
>


=====
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