Capital and Interest Theory

Thomas Piketty writes about equality and believes that reimposing communism in the West will achieve it. Mark Thornton disagrees.

Although progressives and their allies might condemn capitalism, they rarely can define it.

Academic finance makes a lot of use of the capital asset pricing model (CAPM), but is it compatible with Austrian economics? Indeed, Austrians do have something to say, thanks to Mises and Rothbard and Austrian capital theory.

Time is an irreversible flux. Each moment has a unique place in the sequence of moments of time with respect to action.

Capital is the starting point of economic calculation.

"The free market and the division of labor does not promote hyper-atomized individuals. It creates social harmony and community."

Paul Krugman denies that the Fed artificially suppressed interest rates. As usual, Krugman neither understands interest rates nor the effects of inflationary policies.

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.

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.

The concept of capital is the fundamental concept of economic calculation, the foremost mental tool of the conduct of affairs in the market economy. Its correlative is the concept of income.