COMMUNISM, VALUE NEUTRALITY AND MONETARY NEUTRALITY

  • Yinghao LUO Independent researcher, Beijing, P.R.China

Abstract

One of the most puzzling aspects about the functioning of the floating exchange rate regime of the 1980s has been that huge swings in exchange rate have had only muted effects on anything real. To understand this phenomenon, we study the relationship between communism and value neutrality and monetary neutrality. We find that the symmetry of communism is bound to lead to value neutrality. In the case of value neutrality, the economic man will certainly accept monetary neutrality. If money is neutral in the long run then even if purchasing power parity (PPP) is not valid in the short-run it will valid over the long run. However, without considering the time factor, communism is a kind of symmetry that is almost impossible to achieve. While considering the time factor, the symmetry of communism can be achieved in theory!

References

[1] Cantor, G. 1955 [1915]. Contributions to the Founding of the Theory of Transfinite Numbers. Philip Jourdain, ed. New York: Dover. ISBN 978-0-486-60045-1.
[2] Krugman, P. 1993. Exchange-Rate Instability. MIT Press, Cambridge, Mass., ISBN 10: 0262111403, ISBN 13: 9780262111409
[3] Luo, Y. 2016. Nonlinear Trend and Purchasing Power Parity. Journal of Economics Bibliography, 3(3): 490-497. Available at: http://dx.doi.org/10.1453/jeb.v3i3.1001
Published
2017-12-07
How to Cite
LUO, Yinghao. COMMUNISM, VALUE NEUTRALITY AND MONETARY NEUTRALITY. Theoretical and Practical Research in the Economic Fields, [S.l.], v. 8, n. 2, p. 149-152, dec. 2017. ISSN 2068-7710. Available at: <https://journals.aserspublishing.eu/tpref/article/view/1563>. Date accessed: 23 jan. 2022. doi: https://doi.org/10.14505//tpref.v8.2(16).07.