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| | Glossary of Terms: In |
 | | Given that price expresses the ratio between a given quantity of a commodity and its equivalent in money, it is self-evident that inflation manifests the falling value of money, rather than the increasing value of all other commodities. |
 | | As the price of gold shot up to about US$500, other commodities would have to reflect the same drop in the value of money, and this is exactly what happened: oil, wheat, cocoa, wool, silver, etc., etc., all experienced explosions in their value. |
 | | It is frequently said that Adam Smith used the invisible hand metaphor in reference to how the market price was determined, but this is a later interpretation of the concept which does not reflect Adam Smith’s view of market price. |
| www.marxists.org /glossary/terms/i/n.htm (4082 words) |
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