Saturday, March 2, 2013

Money Wisdom #93

"Typically, Weber confronts both economic orthodoxy and its socialist critics.* Prices, which in conventional theory are the result of the interplay of supply and demand, are seen as the 'product of conflicts of interest [that] result from power constellations' in 'the struggle for economic existence'. Consequently, money is not economic theory's 'neutral veil' draped over exchange ratios of commodities. Rather, money 'is primarily a weapon in this struggle, and prices are expressions of this struggle, they are instruments in this struggle only as estimated quantifications of relative chances in this struggle'.**

* Weber 1978: 78-80, 107-109    ** Weber 1978: 108

Geoffrey Ingham The Nature of Money (2004) p.67

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