valuation error

A Quote by Ludwig von Mises on value, monetary value, economic calculation, and valuation error

Monetary calculation is not the calculation, and certainly not the measurement, of value. Its basis is the comparison of the more important and the less important. It is an ordering according to rank, an act of grading (Cuhel), and not an act of measuring. It was a mistake to search for a measure of the value of goods. In the last analysis, economic calculation does not rest on the measurement of values, but on their arrangement in an order of rank.

Ludwig von Mises

Source: p.169 Epistemological Problems of Economics, 3rd edition; 2003; Ludwig von Mises Institute

Contributed by: peter

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