13-1a3a2e6 Money prices of the past influence current expectations, but today’s demand also influences the present price—and the influence of the latter can dwarf that of the former

Value is derived from people’s demand, and since demand is implied in human action which is concerned with the present and the future, value has nothing to do with the past. Also, the regression theorem does not contradict the statement here. Money’s past price influences expectations, as discussed in my other notes on regression theorem, but today’s demand still determines its present value—e.g., if everyone suddenly lose faith in a currency (e.g., hyperinflation), its past price history wouldn’t matter anymore.

“It is clear that value can be conferred on a good only by individuals’ desires to use it directly in the present or in the present expectation of selling to such individuals in the future.”

Next:

• 13-1a3a2e7 Values (and also prices—to the extent that value scales can be ascertained only through them) are not concerned with the past

Related:

• Value scales are concerned with the moment of action, and hence not concerned with the past
  • 13-1a1 The uncertainty of the future must be true because the contrary would completely negate the possibility of action
  • 13-8a2 The demand for money stems from fundamental uncertainty about both the future environment and the future-self