Jeff Herbener and Bob Murphy Discuss the Pure Time Preference Theory of Interest

Jeff Herbener is a Senior Fellow with the Mises Institute and an economics professor at Grove City College. At the 2021 Austrian Economics Research Conference, Jeff presented a defense of the pure time preference theory of interest, and mentioned Bob’s critique of it. This episode is a very informative discussion of their views.

Mentioned in the Episode and Other Links of Interest:

• The YouTube version of this lecture (which has the PowerPoint slides)
• Jeff Herbener lecture on interest at Mises University
• BMS ep. 198 (which provides context for this discussion)
• BMS ep. 119 with Guido Hulsmann (who also tries to replace the Pure Time Preference Theory)
• Bob’s dissertation (which is technical) on Austrian capital theory
• Bob’s article (for the lay person) explaining BB’s critique of the naïve productivity theory
• An intermediate difficulty paper, in which Bob explains problems with viewing interest as “present goods are more valuable than future goods”
• Bob’s 3-part series (one, two, three) on Capital and Interest in the Austrian tradition

​For more information, see BobMurphyShow.com. The Bob Murphy Show is also available on Apple Podcasts, Stitcher, Spotify, and via RSS.