Ep. 273 The Austrian Theory of Interest, Current and Future
For a chapter in Per Bylund’s new collection, Bob explained the pure time preference theory (PTPT) of interest, and then offered suggestions for future work on an Austrian theory of interest. He summarizes his chapter in this episode.
Mentioned in the Episode and Other Links of Interest:
- Per Bylund’s 2022 edited collection.
- Part 1 and Part 2 and Part 3 in the series on Capital & Interest in the Austrian tradition (BMS ep. 26 and 28 and 31).
- Bob’s doctoral dissertation, in which the second and third essays elaborate on the main elements of this episode.
- The Bob Murphy Show interview with Jeff Herbener.
- Bob’s mises.org article summarizing Bohm-Bawerk’s critique of the exploitation theory of interest (and in the article the are links early on to two other BB critiques).
- Help support the Bob Murphy Show.
The audio production for this episode was provided by Podsworth Media.
About the author, Robert
Christian and economist, Chief Economist at infineo, and Senior Fellow with the Mises Institute.
I’m not sure what this episode was about. Who cares what interest rates people offer in the free market? Both buyer and seller have an infinity of reasons to settle on a certain price, an infinity of factors influence it.
There are an infinity of reasons why the USD might be valued more than the Yen, mostly political. Math and “economists” have nothing to say here. Nutjob rapture-evangelical neocon christians might, as they push us into ww3.
Do any mainstream “economists” disagree with the austrian definition of interest, and if so, how does that disagreement manifest in real-world actions?