Capital and Interest Theory

Booms and busts are brewing in the real economy, but computers that can quickly solve math problems won’t tell you much about how business cycles w

Professor Garrison’s work in Austrian macroeconomics over the past twenty-plus years has been most influential. Time and Money and its detailed development of a capital-based macroeconomics

The “values-riches” model, on the other hand, seeks to display the relations between the great macroeconomic nominal variables (“values”) and the flows of quantities of consumer goods (“riches”).

Hayek is seen as one of the main opponents of Keynes because of the debate about macroeconomics that they had in the early thirties. 

I would like to emphasize two implications of my argument.  First, the concept of secular growth as an uncaused phenomenon contradicts the Mengerian method of analyzing 

The present paper aims at showing that two particular types of arguments in favor of the pure time preference theory of interest (PTPTI) are mistaken. 

Ingo Pellengahr’s doctoral dissertation, The Austrian Subjectivist Theory of Interest, focuses on one small aspect of these ongoing debates.

Originary interest does not spring from the passing of time, but from the value relationship between means and ends.  the means of action are inherently less valuable than the ends they serve.  

Engelhardt’s analysis implicitly assumes away the presence of diminishing returns. Diminishing returns have long been at the heart of growth theory 

Garrison's Time and Money picks up where Hayek left off, developing a macroeconomic model based on Austrian capital theory that provides significant insights into macroeconomic phenomena.