Ep. 28 Capital & Interest in the Austrian Tradition, Part 2 of 3

Bob goes solo in his continuation of his series on Capital & Interest Theory. In this episode he explains Bohm-Bawerk’s solution to the problem of interest, namely that present goods are more valuable than future goods. Bob also explains Bohm-Bawerk’s three separate causes for the higher valuation of present over future goods, including the notorious third cause, which is the higher physical productivity of more roundabout processes. Finally, Bob addresses the criticism of Bohm-Bawerk’s theory coming from Keynes, Fisher, Frank Fetter, and Mises.
Mentioned in the Episode and Other Links of Interest:

The audio production for this episode was provided by Podsworth Media.

About the author, Robert

Christian and economist, Research Assistant Professor with the Free Market Institute at Texas Tech, Senior Fellow with the Mises Institute, and co-host with Tom Woods of the podcast "Contra Krugman."


  1. Bohm-Bawerk’s Own Theory of Interest on 04/19/2019 at 3:50 PM

    […] ep. 28 of the Bob Murphy Show, I lay out Bohm-Bawerk’s own theory of […]

  2. Bruno Ray on 04/20/2019 at 2:35 AM

    I’m loving this series. Thanks for the insight and explanation.

  3. Camel on 04/22/2019 at 8:26 PM

    I cannot figure out what you are talking about during any point of this. What is the overall purpose of what you are trying to describe?

    Also I can’t tell if you believe that present goods are more valuable than future goods

    Personally I not convinced that present goods are more valuable than future goods

    • Robert Murphy on 04/25/2019 at 12:41 AM

      Hi Camel,

      I don’t think “present goods are more valuable than future goods” just like I don’t think red goods are more valuable than blue goods (or vice versa). I’ll explain in part 3 of my series.

  4. […] 1¬†and Part 2 in this series (BMS ep. 26 and […]

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