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Norms of percent incoincident among themselves on the different goods, in the same way -
As is well known to brokers in the currency markets - norm of percent not one and
The same in different currencies, for example in pounds sterling and dollars. Therefore
Here a difference in pounds between contracts on "immediate" and "long-term"
Foreign exchange deliveries, as a rule, also it is not identical to the various
Foreign exchanges.
From here own measure of each of the goods gives us the same means for
Measurements of a marginal efficiency of the capital, as well as money. Therefore we can
To take advantage of any goods on a choice, for example wheat, to calculate
Value in transfer on wheat of the expected income of any capital
Asset; and then norm of discount which equalises present value of it
Of some wheaten annuities with a present ask price of asset in transfer
On wheat, will give us a marginal efficiency of asset in transfer on wheat.
If not it is expected any changes in the ratio two alternative
Commodity "value standards", a marginal efficiency of the capital
Asset will be identical, in whatever of these two goods it was measured,
As both numerator and a denominator of fraction which leads to the limiting
Efficiency, will be changed in an identical proportion. If, however,
One of the alternative goods will be changed on the value expressed in second
The standard limiting efficiency of capital assets will be changed in that
Percentage it agree to they are measured in what standard.
To explain it, we will take the elementary case when it is expected that one of
Possible standards, wheat, will raise in value with the constant
Rate: and % a year in transfer on money. A marginal efficiency of asset,
Which is equal it % in transfer on money, will then equal (it-it) % in
Transfer on wheat. As limiting efficiency of all capital
Assets will be changed in the identical size, it follows from this that a parity
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