Capital and Interest Theory

[Cross-posted at Organizations and Markets]

The turmoil in financial markets is eliciting the usual response from the central bankers, all up there in their Hueys, ‘Die Walkuere’

Recorded at Mises University 2007.

There is a new record setting skyscraper in the making in the Unit

...it’s easier to use the new $200,000 note issued by

As the mortgage-backed securities market meltdown accelerates, Bloomberg reports

Chris McGreal reports from Harare:

From the Times:

Time preference says that individuals prefer satisfaction now to later, present to future. This explains the loan market. In the structure of production, the capitalist pays wages now, despite the fact that he himself does not get paid until the final stage when the product actually comes to market.

What determines market prices? Buyers and sellers must know of feasible trades. They can learn from their mistakes. They prefer higher profits to lower profits. They think in discreet terms. Both participants win in market exchanges.