Hicks — The Valuation of the Social Income (2nd Attempt)

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view?

The October 7th discussion didn't happen. So for this week, we're actually discussing John Hicks's 1940 article, The Valuation of the Social Income.

https://www.jstor.org/stable/2548691

The idea of social income, or overall quantity of goods and services produced for the benefit of people, has strong theoretical ties to the price level. Both require a model for how the "real value" of goods and services maps onto their price in money.