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Mentioned here reduction
ReplyDeletethe value of the metal does not affect its inherent quality to be
precious, but for his overall ability to performance
resources. Money and wealth should be considered as two
paired masses that need agreement between
a: "the sum of one refers to the amount other, so that the part
one will treat of the other... If there was a
any commodity, divisible as gold is, then half this item
would meet half of the entire amount from the other side"<$FM o n t e s q
u i e u. L'esprit des lois, liv. XXII, ch. VII.>. If
to assume that in the world there is only one commodity, all
the gold of the earth should be available to represent it; and
on the contrary, if men possessed only one coin, then all
the wealth produced by nature or by human hands, was
to participate in covering its cost. According to this limit
situation if the inflow of silver is increasing, and the products remain in
the same amount, "the value of each coin respectively
reduced." On the contrary, "if the industry, crafts and science
put into circulation new items... you will need to adapt
the expression is the new value of those new products of the signs,
represents the value; and this part will be reduced in your
the relative quantity so how to increase it
shows the value to represent now more
values, and its function is to view them all
the proportions that correspond to them"<$FG r a s l i n. Essai
analytique sur les richesses, p. 54--55.>.
Consequently, there is no fair price: nothing in any
the item indicates by means of some of its internal
the sign on the amount of money that would need for it
to pay. Cheap no more and no less accurate than the high cost.