A Critical Note on Ricardo’s views on Absolute and Relative Value in terms of Labor Values

Journal title HISTORY OF ECONOMIC THOUGHT AND POLICY
Author/s Miguel D. Ramirez
Publishing Year 2024 Issue 2023/2 Language English
Pages 14 P. 53-66 File size 62 KB
DOI 10.3280/SPE2023-002003
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This note examines Ricardo’s views on absolute and relative value in terms of the labor theory of value. It discusses why Ricardo viewed the construction of a standard of value capable of measuring changes in the absolute value of commodities as critical to understanding the division of the national product among the main contending classes in a competitive capitalist economy. The paper also highlights the shortcomings of Ricardo’s proposed standard measure of value – one that would challenge and confound him all his life.

Keywords: absolute value; competitive capitalist economy; invariable measure of value; labor theory of value; national product; natural prices; relative value.

Jel codes: B10, B12, B24

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Miguel D. Ramirez, A Critical Note on Ricardo’s views on Absolute and Relative Value in terms of Labor Values in "HISTORY OF ECONOMIC THOUGHT AND POLICY" 2/2023, pp 53-66, DOI: 10.3280/SPE2023-002003