Archive for Capital & Interest

Bohm-Bawerk’s Own Theory of Interest

In ep. 28 of the Bob Murphy Show, I lay out Bohm-Bawerk’s own theory of interest.

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Capital & Interest in the Austrian Tradition, Part 1 of 3

If you are a professional economist, you should at least give this a listen starting at 37:10. That’s the second half of the episode where I explain how Bohm-Bawerk’s critique of the “naive productivity theory of interest” can be correct, even though mainstream models routinely conclude that r=MPK. Of course, if you call yourself an […]

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A Machine Puzzle (3 of 3)

Earlier I asked how it could be possible that one cryptocurrency appreciated at 10% a year while another appreciated at 20%, and several people in the comments correctly said that the dollar-price of a coin could adjust accordingly. So the rate of return *measured in dollars* for the two different cryptocoins could be equal, even […]

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A Sovereign Bond Puzzle (2 of 3)

Don’t worry kids, I’ll give you the punchline after this one. But I can see in the comments here that you people still aren’t getting what this has to do with Krugman on Kapital. So, not a trick question: The 5-year Treasury yield right now is about 2%. The 5-year Japanese government bond yield is […]

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A Crypto Puzzle

Developers come up with a new cryptocurrency that doesn’t involve “mining.” Instead, holders of the coins enjoy the creation of more coins, at the rate of 10% per year. (So you can use it to buy things, but if you just hold it, the number of coins you hold grows at 10% per year. The […]

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Two Approaches to Criticizing Krugman on Kapital

Nick Rowe and I have both known that something was unsettling in Krugman’s recent posts involving capital theory and the corporate income tax. (BTW this isn’t ideological: I would’ve written the same thing about Steve Landsburg’s diagram except he had too much extra stuff going on, and it would have distracted from my point.) So […]

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MRUniversity: The Solow Model and the Steady State

I am linking to this as a supplement in my Liberty Classroom course on the History of Economic Thought. This is simply amazing how well they get across the concept in such a short time. The animations / sound effects are perfect for such an esoteric topic.

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The Continued Importance of Austrian Capital Theory

I can’t remember if I pushed this before? Anyway this was the talk I gave last August in Rosario, Argentina. Keep in mind for my opening joke routine that people in the crowd needed to hear the translators, since many of them didn’t speak English. That’s why I had to sloooooow it down.

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