PART 1

CHAPTER 6:EXCHANGING
PRESENTED BY : JAVARIA SHAH ,BIBI
FATMA AND SANIA AMBREEN
PRESENTED TO : MA’AM ZAINAB
Wealth Analysis
It is true that the analysis of wealth is not constituted according to
the same curves or in obedience to the same rhythm as general
grammar or natural history. This is because reflection upon money,
trade, and exchange is linked to a practice. And it nevertheless rest
upon one and the same fundamental ground of knowledge.
Money And Prices
The two functions of money
• as a common measure between commodities
• as a substitute in the mechanism of exchange
 Money (and even the metal of which it is made) receives its value
from its pure function as sign. This entails that consequence that the
value of things will no longer proceed from the metal itself; it
establishes itself by itself, without reference to the coinage, according
to the criteria of utility, pleasure.
MERCANTILISM
For the Renaissance ‘economists’, the ability of money to measure
commodities, as well as its exchangeability, rested upon its intrinsic
value: they were well aware that the precious metals had little
usefulness other than as coinage; but if they had been chosen as
standards.
Fine metal was, of itself, a mark of wealth; its buried brightness was sufficient
indication that it was at the same time a hidden presence and a visible signature
of all the wealth of the world.
From here below, we have difficulty in perceiving the few things that surround
us, and we give a price to them according to whether we perceive them to be
more or less in demand in each place and at each time. The merchants are
promptly and very well advised of these things, and that is why they have an
admirable knowledge of the price of things.
Wealth has the power to be exchanged; to analyse itself into elements that
authorize relations of equality or inequality; to signify itself by means of those
completely comparable elements of wealth called precious metals. so all kinds of
wealth in the world are related to one another in so far as they are all part of a
system of exchange.