Capital and Interest Theory

As Japan has shown, ultralow interest rates can greatly affect a society that was once impressively focused on innovation and investment.

Presented at Mises University 2020.

As Japan has shown, ultralow interest rates can greatly affect a society that was once impressively focused on innovation and investment.

Reswitching indicates that the average production period is not necessarily a decreasing function of the interest rate. Granot's generic model of the structure of production shows behavior resembling reswitching.

Addressing a problem that Karl-Friedrich Israel perceived in Salerno's chapter "The 'Income Effect' in Causal-Realist Price Theory," Salerno contends that Israel's resolution implies a denial of the law of demand.

Ulrich Fehl, professor emeritus at Marburg University, passed away November 9, 2019. Prof. Fehl is remembered in this tribute by his student, Peter Engelhard

Ulrich Fehl, professor emeritus at Marburg University, passed away November 9, 2019. Prof. Fehl is remembered in this tribute by his student, Peter Engelhard

Capitalists and entrepreneurs serve distinct functions in the real economy. Capitalists save money that then maintains production processes until final goods are produced. Entrepreneurs adjust the capital structure in light of uncertainty to produce the most desired goods. Capitalists are rewarded with interest, entrepreneurs with profit.

Over eighty years ago, Keynes condemned the rentier and welcomed his future disappearance. Following in his footsteps, politicians and central bankers today are ever closer to effectively bringing this about.

If you've wanted to read Human Action, this is your opportunity to hear it explained by great economists and scholars!