Archive for Capital & Interest
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 […]
Read moreA 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 […]
Read moreA 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 […]
Read moreTwo 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 […]
Read moreMRUniversity: 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.
Read moreThe 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.
Read moreSample “Liberty Classroom” Lecture on Bohm-Bawerk
As 3 of you know, my doctoral dissertation focused on the work of Eugen von Bohm-Bawerk. I was thrilled to be able to devote three of my lectures in my course for Tom Woods’ “Liberty Classroom” to Bohm-Bawerk’s work. Partly because I think even Mises and Rothbard misunderstood what Bohm-Bawerk was saying, I decided this […]
Read moreTimeless Profits
(That’s a clever title once you realize the true purpose of my exercise.) In two previous posts (one and two), I claimed that there is something really fishy in how economists typically solve “the firm’s problem.” Namely, they have the firm maximize the absolute amount of money earnings, but don’t take into account the implicit […]
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