I can't find the exact reference, but in volume III of CAPITAL, Marx states a version of the quantity theory of money for _fiat_ money: if the supply of fiat money rises relative the amount of the Central Bank's bullion reserves, it causes a fall in the price of fiat money, i.e., inflation of prices stated in fiat-money terms.
Jim Devine, e-mail: [EMAIL PROTECTED] web: http://myweb.lmu.edu/jdevine/ Matias writes: > 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.
