tag:blogger.com,1999:blog-6245381193993153721.post8208484370876230393..comments2024-03-28T17:08:15.784-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Davidson on Nominal Contracts and UncertaintyLord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6245381193993153721.post-39454071146491115492014-08-12T12:36:48.654-07:002014-08-12T12:36:48.654-07:00I remember first coming across this essential poin...I remember first coming across this essential point by Paul Davidson, and finally getting that money contracts were a way to control uncertainty to some degree, and so prices fixed under contract were a rational response to uncertainty, which challenged the flexible price/auction view of markets. This especially makes sense under an economic system that encourages the maximization of money profits and has the feature of bankruptcy when money liabilities are not met. It leads one to ask why contracts to exchange real quantities were not also prevalent, and then the "money is just a veil" position tends to fall to the ground.Under capitalism, it is all about the money. Fulfilling human needs/demands with real goods and services is a secondary consideration. Financialization starts to make more sense from this perspective.Anonymoushttps://www.blogger.com/profile/08892278024640898318noreply@blogger.com