The Pure Time-Preference Theory of Interest
Jeffrey M. Herbener
It’s about time. Really! An entire book fleshing out the pure time-preference theory of interest has finally been assembled. The present crop of Keynesians play with interest rates believing they can create prosperity without a sound theoretical basis for how the market determines rates. It is the Austrian insight that present goods have a higher value than future goods, while the followers of Lord Keynes foolishly try to abolish human action.
Giants of the Austrian world have been assembled for the task, along with a fresh new introduction by Jeffrey Herbener. Rothbard, Mises, Garrison, Kirzner and Fetter systematically provide the underpinnings of a theory that, as Israel Kirzner writes, “for almost a century a particular theory of interest has been again and again discussed, refuted, defended, ignored, forgotten, and rediscovered; somehow it has managed to survive.”
Find out why!
From Douglas French’s foreward:
The following essays parse through the uniquely Austrian insight of the pure time-preference theory of interest, but more importantly go to the core of why modern central bank monetary engineering leaves the economy further from recovery while at the same time providing a Petri dish for speculation and malinvestment.
• Foreword by Douglas E. French
• Introduction by Jeffrey M. Herbener
- Time Preference - By Murray N. Rothbard
- Human Action: The Rate of Interest - By Ludwig von Mises
- In Defense of the Misesian Theory of Interest - By Roger W. Garrison
- The Pure Time-Preference Theory of Interest: An Attempt at Clari?cation - By Israel M. Kirzner
- Interest Theories, Old and New - By Frank A. Fetter
- Professor Rothbard and the Theory of Interest - By Roger W. Garrison