Who Were the Sea Peoples?

It turns out it is the same way that Keynes solved it: But Hayek had indeed, like Keynes, absorbed the lessons of the Sraffa exchange, and accordingly acknowledges that whereas the rate of increase of the physical amount of anyone input invested at an earlier date and the physical amount of the same input obtained at a later date may, and indeed will, differ for any two commodities, "the value equivalence in terms of the 'numéraire' at the two dates must bear the same ratio to one another for all commodities... This elucidation, we should note, is precisely the same as Keynes's own-rate setup in chapter 17." -- Tyler Beck Goodspeed, Rethinking the Keynesian Revolution , p. 120-1 The fact that Keynes, Hayek and Lachmann all see Sraffa's own-rate challenge as having been answered, and by the same answer that I see as meeting that challenge, gives me a fair amount of confidence I am on sound footing here!

I own the only salt mine in our area. Salt is a very widely used commodity, but it is not yet money, as it is not universally accepted in essentially all trades. (J.P. Koning might say it has a high degree of "moneyness.") As such, I have opened a side-business: I buy and lend-out all sorts of commodities by paying for them in salt, and when they are returned to me I trade them back in for salt. It is February, and I am looking at two possible loans. One borrower wishes to borrow tomatoes for six months, and the other ice. When I consider the tomato deal, I realize that in August tomatoes are plentiful and will fetch much less salt. In fact, although a pound in February fetches two pounds of salt, I expect that in August a pound of tomatoes will trade for only a pound of salt. Meanwhile, ice is in the reverse circumstances: in the winter, I can get only a pound of salt for a pound of ice, but in August the same amount of ice will fetch two pounds of salt. Since I do my a...