ABSTRACT

This chapter aims at showing how a comparative analysis of some selected writings by Galiani and Marx, more than a century apart, provides unconventional and fruitful theoretical insights about money and prices in equilibrium and in disequilibrium as well. According to Marx's theory of the logical genesis of money he so proudly put forth, money is a particular commodity which is derived from exchanges. The consequence is what, in his colourful language, Marx designated as 'the salto mortale of the commodity' when it is sold resulting from the ignorance of exchange values, itself a direct consequence of the division of labour. Such disequilibrium is temporary since monetary values and produced quantities necessarily change from one period to the next. Using Galiani's notion of money but moving away from his equilibrium methodology and adopting Marx's approach to value it is possible to introduce a monetary market mechanism allowing for the determination of prices in disequilibrium.