(DeLong 2012) Another note on a monetary mental disorder


DeLong, Brad. Another note on von Mises’s (and Ron Paul’s) monetary mental disorder. Grasping Reality with the Invisible Hand. 2011 Nov 13. Available from: http://delong.typepad.com/sdj/2011/11/another-note-on-von-misess-and-ron-pauls-monetary-mental-disorder.html. Accessed 2011 Dec 3. Archived by WebCite at http://www.webcitation.org/63foKpMfa.

DeLong identifies and criticizes a viewpoint that he attributes both to Karl Marx and to libertarians such as Ludwig von Mises, Friedrich von Hayek, and Ron Paul: that monetary value is related exclusively to microeconomic cost of production. By contrast, DeLong maintains that value can be created by economic manipulations that do not involve production and can occur at the macroeconomic as well as the microeconomic level: valuation of individual goods is an emergent property of the entire economy.

 

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Last revision: March 12, 2013