Differences between Inequalities and Unequal Exchange: Comments on the Papers by Chaves and Köhler

Köhler's critique of global wages, where he presents the concept of productivity with great clarity, combines very well with Chaves' presentation of Köhler's model of Unequal Exchange (UE). A brief and solid common position emerges. As I wrote that "the dimension of non-equivalence in a strict, logical sense" can only be shown by comparing real wages, I fully second Köhler's use of Purchase Power Parity (PPP)-data. In the 1980s, I explicitly referred to the research on PPP comparisons. Therefore I am glad he taps the progress made by PPP-research. Nevertheless, Köhler's model does not explain UE.