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Pastimes : Austrian Economics, a lens on everyday reality -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (120)	9/17/2002 12:56:53 AM
From: Wildstar	Read Replies (1) \| Respond to of 445

For a consumer in a money-based market economy, the existing market array of the money prices of goods, as perceived, is the primary external factor that determines his subjective ordinal rankings of the comprehensive states of satisfaction achievable through the actions of exchanging money for goods, as well as providing a basis for valuing as future purchasing power the remaining cash balances included in those states. In turn, the exchange actions taken help determine the future market array of the money prices of goods by sequentially removing the chosen goods from the market beginning from the low end of their price distributions. I'm pretty sure I understand - external prices allow the consumer to create his own subjective valuation rankings, and based on his exchange actions (which are based on those prices), new prices are created. It's a loop.