Bob goes solo by beginning his 3-part series devoted to Capital & Interest Theory in the tradition of the Austrian School. (This is his area of expertise and the focus of his doctoral dissertation.) In this episode, Part 1, Bob explains Bohm-Bawerk’s critique of the “naive productivity theory” of interest, and also reconciles it with the standard approach in modern economics models of equating the real rate of interest to the “marginal product of capital.”
Mentioned in the Episode and Other Links of Interest:
- Bob explains Bohm-Bawerk’s critique of: (1) the naive productivity theory, (2) the abstinence theory, and (3) the exploitation theory, of interest.
- Paul Samuelson’s (with identity disclosed) referee reports on Bob’s journal articles on capital & interest theory.
- Bob’s doctoral dissertation, in which the final Appendix reconciles Bohm-Bawerk’s verbal critique with the standard result that r=MPK.
- Use Bob’s special link to subscribe to Liberty Classroom, where (among other courses) you can get Bob’s two courses on the History of Economic Thought.
- Help support the Bob Murphy Show.
The audio production for this episode was provided by Podsworth Media.