Capital and Interest Theory

Brad DeLong and Paul Krugman continue to mock the Austrian explanation for the business cycle, but their ridicule is based on their own deficient model of the economy's capital structure.

By flooding the credit markets with money created out of thin air, the central banks of the world are interfering with humans' attempts to communicate with each other after the housing bubble popped.

I am tired of hearing economists argue that government and the Fed should expand credit for the good of the economy.

What permits real economic growth is an improvement in the investment infrastructure of the production process. What makes the improvement possible is real savings.

Sponsored by the Mises Institute and held in Houston, Texas; September 22-23, 1995.

Equity markets have collapsed in value, bond yields are off, real-estate markets are (in many places) in a state of disarray, monetary devaluation

Presented at the Mises Institute’s first conference, November 16-17, 1983; in Washington, DC.

1996 Mises Institute Supporters Summit, San Francisco, California; February 9-10, 1996.

1998 Mises Institute Supporters Summit, Palm Springs, California; February 27-28, 1998.

Recorded at the Toronto Stock Exchange; September 16-17, 1999.