Michael Perelman wrote: > David forgot to mention that the paragraph after the first quote cites Michael > Perelman, who notes certain affinities between Hayek and Marx -- in > particular that > fictitious capital distorts price signals. Of course, if fictitious capital > is a > natural part of the market, then prices, contra Hayek, would not be good > sources of > information.
yes, contrary to Hayek, the creation of fictitious capital is normal to capitalism (when not subject to regulations that Hayek would likely object to). By the way, does anyone know anything about the "real bills" doctrine? isn't that supposed to work to minimize the role of fictitious capital? how does it work? -- Jim Devine / "The conventional view serves to protect us from the painful job of thinking." -- John Kenneth Galbraith
