Grundsätze der Volkswirtschaftslehre

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Monograph

Identifikator:: 832651257

URN:: urn:nbn:de:zbw-retromon-63075

Document type:: Monograph

Author:: Devas, Charles S. http://d-nb.info/gnd/124362435

Title:: Grundsätze der Volkswirtschaftslehre

Place of publication:: Freiburg

Publisher:: Herder

Year of publication:: 1896

Scope:: 1 Online-Ressource (XXIII, 521 S.)

Collection:: Economics Books

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CAPITAL AND INTEREST 75 way to construct illustrative figures such as are used in this chapter is to treat the price level as constant; and the influence of capital should be shown by a process of discounting, as just indicated. So far as a discounting process operates differently on different commodities, there are possibilities of a modifying influence on international trade. And the nature of the modifica- tions will be elicited clearly enough by this method of procedure. [ admit unhesitatingly that the discount method (Ricardo’s) is sound. For some purposes, it is the only one that is sound. It is logically the only one tenable for the purposes which Ricardo had in mind when writing the chapter on Value in his Principles: that of analyzing the relations between wages and value, and in general the relations between distribution and value. But it does not seem to me necessarily imposed for the purpose of the present inquiry. It would simply lead to the same results, but by a more troublesome route. [llustrative figures such as I have worked out could be arrived at equally well by the discount method; and they would point to the same general con- clusions. They are more easily calculated and more easily followed on the method which I have used, and are equally valid as regards the particular problem in hand; namely, that of showing in what way the item of interest has a modifying effect. True, they make the tacit assumption that advances in the prices of all goods take place as this item is introduced ; the advances being greater or less according as the item counts more or less. In order to carry to its logical outcome this assumption of general price advances, it would be neces- sary to assume also equivalent changes in the monetary supply. For the completeness of the reasoning the reader who is intent on full logical con- sistency should bear in mind this additional assumption. For the purpose of tracing the effect on international trade — the sole object here in view — it has seemed to me easier and simpler to use the method of supplement, rather than the method of discount. If the object in hand were to consider each and every aspect of a theoretic analysis — monetary theory as well as the theory of distribution, domestic prices as they would be with and without a return to capital — the strict Ricardian procedure would alone be consistent and conclusive.

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