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This article provides information on a solution for comparative static problems in which qualitative information is available but quantitative information is not. An additional property of the technique set out in the study can be incorporated directly into the system. The solution technique has been organized in the form of an algorithm, devised for maximum efficiency in use. The solution algorithm is designed to determine the sign pattern or patterns of the solution of a system of linear equations Ax = 0 where the signs of the elements of the matrix A are known but the numerical values are unspecified. The algorithm follows definite steps. The algorithm can be used to examine whether a determinant is invariant in sign with respect to changes in the numerical values of its elements.

The existence of comparative statics results under qualitative conditions has been studied by Lancaster [9, 10] and Gorman [7] in the "purely qualitative" case in which the only information assumed available to the economist is that provided by the sign patterns of certain matrices and vectors. The Lancaster-Gorman results have been extended in Bassett, Habibagahi and Quirk [3] and Bassett, Maybe and Quirk [4] to the case in which it is assumed that equilibrium positions possess local dynamic stability so that the quantitative information provided by the stability hypothesis may be used together with sign pattern information to determine the comparative statics properties of the system under study. In the present paper, the qualitative approach to comparative statics analysis is extended in yet another direction, by incorporating into the qualitative analysis the quantitative information provided by the assumption that Walras' Law characterizes the system under study. The results presented here are derived under a "strong dependence" assumption which excludes the possibility of zeros appearing in the coefficient matrix of the system, so that the implications of Walras' Law for comparative statics analysis are not completely covered by the present paper. In brief, the main result of this paper asserts that in a qualitatively specified environment in which Walras' Law holds, complete comparative statics results can be derived under the strong dependence condition if and only if the system can be transformed into an extended form of the "gross substitute" case; further, local dynamic stability of equilibrium can be proved if and only if the "gross substitute" case holds. These results are established for the case where there are more than three commodities in the system; the special properties of the smaller dimension cases are also noted. [ABSTRACT FROM AUTHOR]

The article discusses the idea of comparing the value of money in two different places or at two different points of time. The author thinks that it is quite difficult to come up with a precise answer to the question of comparative value of money in objective terms. Some crucial factors like effective demands of goods must be same to compare the purchasing power of money. The lack of such a common standard can make it difficult for this kind of an estimate to be made. These factors could include the use of different metals in minting money at different times and places and different economic conditions. It is suggested that further detailed case studies covering long periods of time should be undertaken to facilitate the measure of such an estimate to a certain extent.