Fundamental value, Fundamentals

Fundamental value, a.k.a. fundamentals, refers to the idea that there exists an underlying value of outputs which is discrete from price. In some versions, fundamental value approximates long-term price (i.e. ignoring short-term volatility); in other versions fundamental value is determined by forces other than supply and demand. For Marx, this determinant of output value is socially necessary labour time. In the new economic space it is performances.