Entrepreneurship, knowledge and employment

Turgot's 'Value and Money'

Kuroki Ryuzo, Rikkyo University

Turgot’s ‘Value and Money’ Ryuzo KUROKI Turgot’s vision of money is not necessarily clear partly because the collapse of Law’s system helped him to realize the illusion of money and brought him the hostility against Law's system. However, Turgot, rather unexpectedly, accorded importance to money, in a sense that, at that time, society had already be organized as a money-oriented economy and money had an indispensable role in commodity exchange and as a means of capital accumulation. It is clear that the influence of the breakdown of the Law’s system was so strong that Turgot could not achieve the idea of financing capital formation by introducing the banking system or credit in his 'Reflections' (Murphy). However, in his note called ‘Value and Money’, Turgot developed his idea on value and money, and presented the role of money and introduced even banknote as well as the subjective value theory. Turgot, reading Galiani and Condorcet, presented his own idea concerning the subjective theory and the theory of exchange. He admitted that the exchange of commodities was ruled by the subjective valuation of each people, whereas, claimed that the exchange value itself was not equal to any subjective value. It is somewhat a mean among people’s subjective valuation, and, in conclusion, the behavior of exchange should not be considered as the equal-exchange, but as the unequal-exchange. My presentation will explore what happened in Turgot’s idea on value and money after his writing 'Reflections'.


Keywords: Turgot, value and money, subjective theory, exchange value

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