Capital and Interest Theory

The reader should trudge his way through this book for two reasons. First is the explanation for why the purchasing power of money must be defined in terms of consumers’ goods prices, not capital goods. Second, and more importantly, Braun resurrects the subsistence fund doctrine, an integral aspect of business cycle theory and completely neglected by modern writers.

The paper aims to defend the general validity of the ABCT against the assumption that the theory does not hold if entrepreneurs are able to anticipate correctly the inflationary effects of a fiduciary credit expansion.

Fetter's neglected work is the source of some of the greatest insights in Austrian economics, and deeply influenced Mises, Rothbard, and others.

I have lived in Auburn, Alabama, for more than three decades and have never seen a Super Sized Construction Crane. Last week, two were erected in the middle of town.

Mark Thornton is interviewed on the RT program, "Boom Bust". He discusses malinvestments stimulated by artificially lowered interest rates.

The world waits to see if next week is finally the week that the Fed announces its rate hike. Can the economy survive whatever small bump the Fed deals out? Perhaps, but that won’t change the inherent instability of our current monetary regime.

Thomas Piketty is wrong. Markets do not concentrate wealth. They work to diffuse wealth and limit the power of any single enterprise. Meanwhile, many lose their fortunes as quickly as they gain them.

This paper argues that it may be misleading to search for a direct causal effect of interest rates on the length of production because another, related factor affects it more directly. We name this factor intertemporal labor intensity...

Includes an introduction by Jeff Deist. Recorded via Skype at the Mises Institute in Auburn, Alabama, on 23 July 2015.

Recorded at the Mises Institute in Auburn, Alabama, on 23 July 2015.