ABSTRACT
Ricardo discusses the problem of value from two aspects. On the one hand, he inquires into the foundation of exchange values. On the other hand, he deals with the problem of the standard measure of value. The basic ideas of Ricardo in respect to the interrelations of ‘cause’ and ‘measure’ of value are very well brought out in his polemic against Torrens in his last paper on ‘Absolute and Exchangeable Value’. Although Ricardo interrelates cause and measure of value, he does not use the same ‘substance’ for both. Labour bestowed is the main cause of value. It cannot, however, serve as a measure of value. This function can be performed only by a commodity. Ricardo neutralizes the influence of capital on value by assuming the use of equal ‘capitals’ in all lines of production. With production periods of equal length, changes in profits (and in wages) would affect all goods alike.
