THE NATURE OF NORMAL PRICES Cover Image

ПРИРОДА НОРМАЛНИХ ЦЕНА
THE NATURE OF NORMAL PRICES

Author(s): Miroljub Labus
Subject(s): Economy, Financial Markets
Published by: Правни факултет Универзитета у Београду

Summary/Abstract: The nature of normal prices is revealed not earlier than within the framework of the social reproduction. From the aspect of social reproduction, of significance are two factors: the conditions of production and the method of distribution of the surplus product. The first factor has been described in the usual manner within the input-output analysis and this description rests on the assumption of constant yield in respect of the proportion of production, the lack of joint production and fixed capital. The second factor means the alteration of the traditional concept of the surplus product; the newly adopted definition of this concept is that the suplus product is the difference between the nett product and the „existential” consumption. The functioning and inter-linking of the processes of production emphasize other features of the commodity, and not ist walue. These features are: firstly its. reproductiveness and, secondly, its exchangeability. Economic significance is attached only to those commodities the quantity of which can be multiplied in the processes of production, stressing the special role of the basic commodities, which are directly or indirectly engaged in all processes of production. Demand has no impact on the formation of normal prices. Its impact is limited to the determination of the proportions of production and / or the level of sale of the produced product. The distribution of national income is not determined by the productivity of the „factors of production”. It precedes the market conditions of exchange of commodities, and is also restricted by a number of social, class and institutional factors. From the aspect of the model of normal prices, it is an exogenous value, vhich is the reason for the rejection of Marshall’s concept of „balanced prices”. Normal prices are not indexes of scarcity of material goods, but relation of exchange which are essential for the ensuring of the even functioning of all processes of production, on the one hand, and their realization through the market of socially determined principles of distribution of the national product on the other hand. In conditions of a proportionate growth, this role is transformed into the demand for the support of the trend of proportionate growth of all processes of production. They must provide for such a market exchange which will form the basis for each individual process having at its disposal all material goods necessary for ensuring increase in production according to the uniform rate of growth. This task of normal prices is not directly obvious due to the dichotomy of the material sphere and the sphere of value within the social reproduction. It is therefore important to emphasize the dual nature of normal prices, and consequently, and sense in discussing only those forms of normal prices supporting sensible forms of economic growth. Marx knew about the idea of dualism, however, the undevelopment of available analytical (and mathematical) means did not allow him more fruitful application.

  • Issue Year: 31/1983
  • Issue No: 1-4
  • Page Range: 472-486
  • Page Count: 15
  • Language: Serbian