Our discussion of a global, constant-value financial unit GCU, or G, began with a decomposition of a commodity J’s money price P_JK $/unit into components of absolute global value Y_J G/unit and the price P_0K $/G of one GCU in the currency of economy K:

The notion of value’s money price P_0K was then set aside while developing our ideas about a constant value unit, an absolute commodity value, the interest rate, and Model 0’s monetary state variables. With the monetary state established, we now can return to the evaluation P_0K of an economy K’s currency, which will then enable computation of cardinal prices by the equation above.

One instructive interpretation of P_0K $/G is as the marginal cost of producing economy K’s total output rate Y_0K — this output being measured in the artificial, global, constant-value financial unit GCU G/year. It is therefore useful to proceed from the equations for marginal cost and value as they apply to the production of individual commodities, or to the marginal value of a commodity to a given sector.

Perhaps the only unarguable assertion to be made regarding valuation is that the current exchange rate of a commodity in terms of itself is always exactly one-for-one. Having sequestered the notion of value with levels of physical assets and the processes of transformation they support, currency has no significance beyond that of any other commodity. Its spot price is therefore always unity; and our P_0K $/G will take on whatever value makes this so in the current moment.