Money has no Price: Marx’s Theory of Money and the Transformation Problem

  • Fred Moseley

Abstract

According to the standard interpretation of the ‘transformation problem’ in Marx’s theory, the money commodity (e.g., gold) is treated as essentially the same as all other commodities. If the first place, it is assumed that the money-commodity has a value-price (price proportional to labour-time)2 and also has a price of production, which could be different from its value- price, just like all other commodities. Second, it is argued that, in the transformation of value-prices into prices of production, some surplus-value is transferred from the gold industry to all other industries in order to equalize the rate of profit. Finally, as a result of this transfer of surplus-value from the gold industry to all other industries, the prices of production of all other commodities increase, so that the total price of production of commodities is greater than their total value-price. In this chapter, Bortkiewicz and Sweezy will be considered as the representatives of the standard interpretation of Marx’s theory of money and the transformation problem in particular (with the former the originator of the standard interpretation).

Keywords

Mandel Culmination 

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© Fred Moseley 2005

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  • Fred Moseley

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