Austrian Economics Overview

How are money prices determined? The stock of the money commodity responds to demand and supply of the consumers and their preferences just as with any other good.

Entrepreneurs see the future better than others and go and make money off it. Profits are an index that maladjustments are being met and combatted by the profit-making entrepreneurs. Capital does not beget profits. Only wise entrepreneurial decisions do that.

Rothbard's approach to money prices is not as a barter exchange system. Instead, he made money prices the common denominator for all exchange ratios. You can now engage in economic calculation.

Recorded at Mises University 2008.

Here Rothbard deals with the pure rate of interest, as determined by time preference. It's a ratio of prices between present and future goods. The interest rate is equal to the rate of price spread in the various stages of production. It pervades all time markets.

Recorded at Mises University 2008.

The mental constructs of the evenly rotating economy and of specific factors of production are discussed. Distinguishing between interest and profits and a construct of slow change are revealed through the ERE as Rothbard considers the final state of rest.The ERE construct is simply a useful, unrealizable, mental tool.

This middle chapter on production theory goes into detail on factor pricing and discounted marginal value product. The way Rothbard developed every aspect of production theory is unique. As the economy becomes more specialized and complex, the importance of this market process becomes greater.

Direct exchange was limited. The pattern of indirect exchange led to the common medium of exchange: money. Maximization of psychic income always leads the seller of a good to seek the highest money price for it, and the buyer of a good to seek the lowest money price.

Leading Austrian Economists discuss Henry Hazlitt's classic book Economics in One Lesson. Interview 1 of 12.