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Date: | Tue Mar 18 10:47:50 2008 |
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Michael Nuwer's reproduction of Joan Robinson's quote is particularly
helpful. It once again shows the value of often going to the primary
sources rather than relying on paraphrases int he secondary literature,
even when these may appear to be "pithy and on target."
First, the quote shows how poorly Joan Robinson understood the classical
theory of value and her failure to appreciate that Alfred Marshall was
restating what the classics had taught. Robinson's second chapter in
her _Economic Philosophy_ where she disputes Smith's meaning by "value
in exchange" as price and "value in use" as "usefulness" or utility
illustrates my first observation, and her third chapter dealing with
Marshall does the second.
Secondly, it is incorrect to interpret Ricardo's quest to discover the
laws that regulate the distribution of rent, interest, profit and wages
(Preface to the _Principles_) as his having changed the question of
political economy or economics back from one focus to another: relative
price determination from supply and demand to the distribution of
"output as a whole." Indeed, the theories of wages, interest, and the
price level are best explained as applications of the classical theory
of value (price). Had Keynes and Robinson appreciated that, they would
not have had so much trouble recognizing Marshall's restatement of the
classical theory of interest as the application of value (price) theory
to "capital" or savings, what Robertson called "loanable funds." Do the
same to money (currency) and you get the theory of the price level.
We have so much useful stuff to recover from the classics by reading
them carefully.
James Ahiakpor
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