OscailtMarx's Economics for Anarchists - Chapter 2The Labor Theory of Value2011-10-08T23:28:01+08:00Anarkismoanarkismoeditors@lists.riseup.nethttp://www.anarkismo.net/atomfullposts?story_id=20690http://www.anarkismo.net/graphics/feedlogo.gifOld Codgerhttp://www.anarkismo.net/article/20690#comment136892011-10-08T23:28:01+08:00Barry Brooksdurable at earthlink dot netThe quantity theory of money is misleading, because it holds
that the more money...The quantity theory of money is misleading, because it holds
that the more money is available, the less “value” each unit has.
<p>
When money is created by a bank loan, that could be deflationary
or inflationary depending on the type of loan. A loan to increase
supply will have the opposite effect from a loan to increase demand.
<p>
Milton Friedman's book "Studies in the quantity theory of money" has
a graph showing that during the German hyper-inflation the real value
of the currency fell to 5% of its former value. Being a believer in the
quantity theory, Milton goes on to puzzle over that inconsistent data.
<p>
Likewise, the confederate currency was increased at a rate lower than
the inflation rate causing the purchasing power of the money to fall. Is
that how the quantity theory works?
<p>
Money is never thrown from airplanes, or anything like it. It would be
a good idea to dump crackpot theories from our airplane.
<p>
Barry Brooks
was Marx a monetarist?http://www.anarkismo.net/article/20690#comment136962011-10-11T15:58:02+08:00ajohnstonealanjjohnstone at yahoo dot co dot uki think Marx and Marxists generally consider only M0, (currency) in quantifying ...i think Marx and Marxists generally consider only M0, (currency) in quantifying money but not M1 ( currency plus bank deposits).<br />
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An article that may be of interest since it deals with Marx v Friedman directly<br />
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Was Marx a monetarist? <a href="http://www.marxists.org/archive/hardcastle/marxmonetarist.htm" title="http://www.marxists.org/archive/hardcastle/marxmonetarist.htm">http://www.marxists.org/archive/hardcastle/marxmonetari...t.htm</a><br />
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i am finding these articles on Anarkismo very thought provoking. <br />
Marx & moneyhttp://www.anarkismo.net/article/20690#comment136972011-10-12T14:04:36+08:00WayneMarx did not believe that the quantitative theory of money applied, because in h...Marx did not believe that the quantitative theory of money applied, because in his day money was either gold or paper backed by gold--that is, something created through labor and having value. Fiat money, unbacked by anything concrete, does follow the quantitative rule. But what I should have written was that , all other things beng equal, the more money per commodities, the less "value" each monetary unit has. <br />
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Of course, much depends on many mediations and countertendencies. For example, Confederate money lost value due to the Confederacy losing the Civil War! People coiuld see that its money would soon be completeliy worthless.<br />
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I am pleased that comrade Johnstone finds these articles thought provoking. Chapter 3 will be oiut soon.