Capital and Interest Theory

Displaying 1 - 10 of 678

The Inverted Yield Curve and Recession

Booms and BustsCapital and Interest Theory

Blog06/13/2022

Economists have failed to explain the mechanism by which an inverted yield curve signals an impending recession. But the Misesian explanation of the business cycle quite easily explains the pattern we observe in interest rates.

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Contrary to What Some Economists Claim, the Fed Can't Give the Economy a "Neutral" Rate of Interest

Central BanksThe FedMonetary PolicyCapital and Interest TheoryMonetary Theory

Blog05/07/2022

Fed chairman Jerome Powell recently claimed they were "targeting" the "neutral" interest rate. The Fed cannot set or even know that rate, for it doesn't come from government authorities.

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What Determines Interest Rates? Comparing Mainstream Economics to the Austrian School

Central BanksMoney and BanksCapital and Interest TheoryPraxeology

Blog04/29/2022

The typical mainstream economic view of interest rates ignores an important factor: individual time preferences.

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How the Fed's Tampering with the Policy Rate Affects the Yield Curve

Central BanksThe FedBusiness CyclesCapital and Interest Theory

Blog04/16/2022

Thanks to the Fed's monetary gyrations, we are seeing the yield curve acting abnormally. However, one cannot get something from nothing and market forces ultimately will frustrate the Fed's designs.

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Robots Won't Destroy Us: How Automation Creates Jobs

Labor and WagesCalculation and KnowledgeCapital and Interest TheoryProduction Theory

Blog04/10/2021

The goods created by automation—and the labor freed up by it—become inputs for industries downstream.

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Böhm-Bawerk Explains Why Marxist "Exploitation" Is Nonsense

SocialismCapital and Interest TheoryProduction Theory

Blog11/11/2020

Marx’s theory of exploitation forms the foundation of all his work. But Marx couldn't tell the difference between profit and surplus, exposing the incoherence of his theory. 

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Why Socialism Won’t End Worker "Exploitation"

Labor and WagesSocialismCapital and Interest Theory

Blog11/03/2020

Economic realities mean the socialist state would need to utilize the same method of discounting wages as capitalists do. The only difference is that under socialism, bureaucrats would do the "exploitation."

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The Saving Problem in America: Alternatives and Reforms

Monetary PolicyTaxes and SpendingCapital and Interest Theory

Blog09/15/2020

Savings are the foundation for a productive and advanced economy. Unfortunately, governments insist on policies that make it harder for ordinary people to save.

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The Social and Economic Side Effects of Negative Interest Rates

InflationCapital and Interest Theory

Blog08/26/2020

Negative interest rates lead to zombie firms, rampant consumerism, and growing obstacles to entrepreneurship. 

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The Social Consequences of Zero Interest Rates

Media and CultureMonetary PolicyCapital and Interest Theory

Blog07/04/2020

As Japan has shown, ultralow interest rates can greatly affect a society that was once impressively focused on innovation and investment.

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