Michael: In my view, you correctly express a false theory. The correct theory is expressed as follows:
"If the velocity of circulation is given, then the quantity of the means of circulation [quantity of money in circulation] is simply determined by the prices of the commodities. Prices are thus high or low not because more or less money is in circulation, but _there is more or less money in circulation because prices are high or low_ [emphasis added]. This is one of the principal economic laws, and the detailed substantiation of it based on the history of prices is perhaps the only achievement of the post-Ricardian English economists." (Karl Marx, A contribution to the Critique of Political Economy, Ed. by Maurice Dobb, pp. 105-6) Of course we would need to complement this law with the concepts of commodity, value, money (as measure of value and medium of exchange), exchange, the metamorphosis of commodities, etc. I hope it helps, Matias > few such 'laws' as such exist in social sciences, is > quantity theory - > volume or amount of a product remains constant and > demand also is > constant, price will rise as amount of money and > credit in circulation > increases - money an example (assuming i have > expressed theory > correctly)... poli-sci guy michael hoover ___________________________________________________________ 250MB gratis, Antivirus y Antispam Correo Yahoo!, el mejor correo web del mundo http://correo.yahoo.com.ar
