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Review of The Austrian Subjectivist Theory of Interest: An Investigation into the History of Thought, by Ingo Pellengahr

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Tags Capital and Interest TheorySubjectivism

07/30/2014Robert P. Murphy
 

Volume 4, No. 1 (Spring 2001)

 

Ingo Pellengahr’s doctoral dissertation, The Austrian Subjectivist Theory of Interest, focuses on one small aspect of these ongoing debates. He traces the development and evolution of what is generally referred to as the (pure) time preference theory (PTPT) of interest. The PTPT is historically associated with the Austrian School, whose characteristically subjectivist members stress the primacy of individual valuations—versus objective facts concerning the productivity of capital—in any discussion of interest. Pellengahr offers a largely critical review of the major Austrian contributions to the evolving PTPT and then presents an original, “essentialist” synthesis which he hopes will be acceptable to the various factions in the debate.

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Contact Robert P. Murphy

Robert P. Murphy is a Senior Fellow with the Mises Institute. He is the author of many books. His latest is Contra Krugman: Smashing the Errors of America's Most Famous KeynesianHis other works include Chaos Theory, Lessons for the Young Economist, and Choice: Cooperation, Enterprise, and Human Action (Independent Institute, 2015) which is a modern distillation of the essentials of Mises's thought for the layperson. Murphy is co-host, with Tom Woods, of the popular podcast Contra Krugman, which is a weekly refutation of Paul Krugman's New York Times column. He is also host of The Bob Murphy Show.

Cite This Article

Murphy, Robert. The Austrian Subjectivist Theory of Interest: An Investigation into the History of Thought, by Ingo Pellengahr. The Quarterly Journal of Austrian Economics 4, No. 1 (Spring 2001): 85–89.

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