Carlos asks:
Hi all, I'm concerned about the possible instability of time-preference schedules in the PTPT, v.g. as described in section "Time Preference and Individual Value Scales" of MES. My point is that man valuates money in hand against future money, but the valuation of money itself depends on relative prices. In the process of constructing an interest-rate -> savings schedule the rate of interest must of course vary, and with it relative prices do also. So is the initially proposed value scale really unaffected by the change in the interest rate? Should we assume that ad hoc or can a monotonic relationship be derived only from praxeological axioms? Notice that this is not related to the CCC critique of circularity in the measurement of aggregate capital, I understand PTPT is not guilty of the charges raised by Joan Robinson against the neoclassical theory of capital. Regards -- Carlos
Sorry Carlos,
your post was sandwiched between a lot of spam and accidently got deleted in the crossfire. Here it is copy and pasted.