Marianne says:
>In response to bill mitchell who saw "no problem" in aggregating capital
>according to some common unit such as money:
>
>Of course there is a problem: the dollar value of a piece of machinery
>one year is not the same the next year--to calculate its value in a given
>year you need to adjust for both the rate of inflation and the rate of
>technological change * and* diffusion in the case of that particular
>machine. Then comes the problem of aggregation across different kinds of
>machinery and capital. The problem is as great or greater than that of
>finding a common unit of labor power--that is, why not measure the value of
>a machine in terms of the units of labor power embodied instead of
>dollars? Equally difficult problems.
>
i was speaking as an economist and realising that i was shunting the problems
you raise down the corridor to the accountants.
kind regards
bill
--
#### ## William F. Mitchell
####### #### Head of Economics Department
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