Capital and Interest Theory

As the Federal Reserve engineers one financial bubble after another, we are reminded that the Austrian Business Cycle Theory explains what is happening and how there is a better way. 

Includes awarding the 2024 Mises Institute Peterson-Luddy Chair in Austrian Economics to Dr. Jeffrey Herbener.

Ask most people why our economy is advanced, and they will likely will answer, “Technology.” Yet, technical knowledge is meaningless without capital development, and capital development is impossible without real savings.

One of the myths of Keynesian theory is that through monetary injections and government purchases, an economy can spend itself into prosperity. While such a scenario is economically impossible, most mainstream economists still believe it.

Paul Cwik revisits the podcast to explain his new book, which aims to simplify ABCT for economics students and professors.

Ask most people why our economy is advanced, and they will likely will answer, “Technology.” Yet, technical knowledge is meaningless without capital development, and capital development is impossible without real savings.

While the world is abuzz over artificial intelligence (AI), present technologies are limited more than most people want to believe. The situation is ripe for malinvestments.

While the world is abuzz over artificial intelligence (AI), present technologies are limited more than most people want to believe. The situation is ripe for malinvestments.

After years of  relentless monetary inflation, the Fed can't fix our present inflationary malaise. The only long-term solution is sound money. 

What is capital?