Capital and Interest Theory

Mises described the problem, Hayek proposed the direction, Kirzner explains why the market will not stop. And the market, as so many times before, has already found the first step.

When inflation heats up because central banks hold interest rates to artificially low levels, the standard approach is for central banks to increase interest rates. The better policy is not to artificially manipulate interest rates at all.

Mises described the problem, Hayek proposed the direction, Kirzner explains why the market will not stop. And the market, as so many times before, has already found the first step.

Periods of crisis reveal something unsettling about human behavior—fear leads to the acceptance of what would have been unthinkable.

A tribute to the late Roger W. Garrison (1944–2026) was delivered at the opening reception of the Austrian Economics Research Conference (AERC) in Auburn, Alabama on March 19, 2026.

Marx built part of his system on the belief that capital would create the “great reserve army of the unemployed,” and modern Marxists have made the same claim about AI. However, we are seeing AI actually enhance the value of labor, not diminish it.

Dr. Per Bylund unpacks Rothbard's concept of the capitalist entrepreneur as the economy's true mover and shaker: the figure who not only forecasts future consumer demand but puts real capital behind those forecasts, bearing uncertainty and driving the structure of production.

Milton Friedman and others tried to explain interest rates using liquidity, economic activity, and inflation expectations. These things, however, only describe interest but do not explain it. Only the Austrian theory of time preference correctly explains interest.

Milton Friedman and others tried to explain interest rates using liquidity, economic activity, and inflation expectations. These things, however, only describe interest but do not explain it. Only the Austrian theory of time preference correctly explains interest.

All Austrian economists in my and subsequent generations owe Roger a debt of gratitude.