The Pure Time-Preference Theory of Interest
Index
Index
A
agio theory of interest, 25, 38, 39, 134
American Economic Association, 133
Austrian School of Economics, 10, 64, 99, 165
Austrian theory of capital and interest, 61, 63, 86, 102, 160
autistic exchange, 92
Avvedimenti civili, 61
B
Bailey, Samuel, 63
Becker, Gary S., 87
Böhm-Bawerk, Eugen von, 12, 21–34, 35–40, 43, 45, 51, 56, 62, 64, 65, 66, 70, 72, 74, 100, 102, 104, 107, 108, 109, 110, 113, 114, 115, 116, 117, 118, 121, 126, 130, 133, 134, 144, 157, 166
against the PTPT, 21–26
criticism of Rae, 29–31
theory of interest, 26–34
Brown, H.G., 108, 112, 127, 132, 140, 154, 155, 156, 157
Bush, George W., 7
C
Cambridge Capital Controversy, 122–25, 126
capital, 162
capital accumulation, 79, 80
Capital and Interest, 65
capital value, 140
capitalization, 12, 15, 16, 18, 20, 22, 34, 35, 39, 41, 42, 43, 44, 50, 51, 62, 138
definition of, 62
capitalization theory of interest, 132–39, 151, 153, 154, 157
Cassel, Gustav, 165, 166, 172
causal-realist theory, 11, 12, 30, 36, 40, 46
central banking, 7, 9, 10
Clark, John B., 101, 156, 165
command of economic goods, 24, 25
Commentary on Usury, 60
contract interest, 12, 22, 147, 148, 151, 155
cost of money, 7
credit, 82
credit markets, 29
Crusoe, Robinson, 138
D
Della Moneta, 61
determining forces, 117
discounted marginal revenue product (DMRP), 46
discounting, 34, 44, 48, 161, 163, 164, 165, 168
Dorfman, Joseph, 43
E
Economic Principles, 49, 52
effective desire of accumulation, 27–29, 31
equilibrium rate of interest, 169, 170
evenly rotating economy, 75, 76, 77, 80, 83
F
Failure of the “New Economics,” The, 9
Fetter, Frank, 12, 21–22, 35–57, 65, 66, 102, 105, 111
defense of PTPT, 34–40
Fisher, Irving, 16, 35–40, 44, 51, 65, 87, 91, 93, 102, 103, 104, 107, 112, 115, 116, 117, 122, 127, 128, 129, 130, 131, 132, 140, 141, 142, 143, 144, 154, 156, 161, 169, 171, 172
Friedman, Milton, 161
“fructification theory of interest,” 22, 62
future discount, 10, 14, 17
future goods, 59, 68
future utility, 32
G
Galiani, Ferdinando, 26, 61
Garrison, Roger, 44, 45, 52
Gesell, Silvio, 8
H
Hausman, Daniel M., 100
Hayek, Friedrich August von, 16, 36, 166, 171
Hazlitt, Henry, 9
History and Critique of Interest Theories, 21, 26
Hülsmann, Guido, 56, 57
human action, 13–15, 16, 30, 51, 66, 71, 89, 90, 92
choice, 14, 16, 30, 34, 52
means and ends, 13–14
Human Action: A Treatise on Economics, 51, 66
I
impatience theory of interest, 128
interest, 7, 10, 11, 12, 16, 18, 19, 21, 29, 30, 41, 43, 45, 49, 50, 54, 56, 62, 81
as opportunity cost, 23, 37
as payment for capital advances, 19, 20, 22–23
as productivity return, 124
definition, 67, 81, 137
expressed as money, 42
justification of, 60
neoclassical view of, 124
originary interest, 22, 67, 68, 69, 70–84
uniform rate of interest, 15
interest income, 25, 111, 112, 113, 118, 120, 122, 125, 126
interest problem, 111, 112, 115, 127, 134, 156
interest rate, 7, 8, 10, 22, 29, 35, 44, 45, 48, 50, 51, 53, 55, 59, 67–84, 120, 140, 143, 151, 170
as a price spread, 36
as the price of waiting, 45, 165–68
market-clearing, 45
negative interest rates, 8
positive interest rate, 85, 86
“Interest Theories New and Old,” 35, 36
interest theory, 12, 26, 85, 115, 122, 135
internal financing, 90–95
intertemporal exchange, 90–95, 103, 109, 118, 121, 122, 124
J
Jevons, William Stanley, 12, 16, 26, 51
K
Keynes, John Maynard, 8, 9
Keynesians, 9, 10
Kirzner, Israel, 44, 45, 58, 166
Knies, Karl, 63
Knight, Frank, 44, 101, 107, 109, 112, 162, 163, 165, 166, 172
Kuznets, Simon, 111
L
Lachmann, Ludwig, 95
Law, John, 8, 9
liquidity, 9
loan pricing, 7
loans, 65, 13I
loan markets, 83
Longfield, Samuel Mountifort, 63
Lottini da Volterra, Gian Francesco, 61
M
Man, Economy, and State, 172
Mankiw, N. Gregory, 7, 8
marginal physical product (Mpp), 46
marginal productivity, 65, 66, 169
returns, 103
marginal revenue product (MRp), 46, 51
marginal utility, 52, 53, 135
marginal utility theory of price, 31
market economy, 15
market interest, 114, 115, 124, 126
market prices, 122, 143, 165, 165
Marx, Karl, 162, 163
Menger, Carl, 11, 12, 13, 16–18, 22, 23, 24, 26, 27, 35, 36, 64, 121
Menger’s Law, 163
methodological essentialism, 120
Mill, James, 63
Mises, Ludwig von, 12, 16, 47, 51, 52, 53, 55, 56, 66, 85–98, 102, 105, 161, 166
time preference theory, 89
Mississippi Bubble, 9
money, 48, 53, 55, 57
and interest rates, 62
as the common unit of value, 48, 49
as an expression of wealth, 49
tool of comparison, 47
Moss, Laurence S., 85–98
Murphy, Robert, 55
N
Navarrus, Martín de Azpilcueta, 60
negative interest rates, see interest rates
neoclassical theory, 85–98, 101, 123
New Directions in Austrian Economics, 85
numeraire money, 29
O
Occam’s Razor, 169
originary interest, see interest definition, 70
originating forces, 117
P
Pellengahr, Ingo, 99
physical productivity, 109, 114, 116, 118, 119, 120, 121, 125, 126, 146, 170
Positive Theory of Capital, 65
positive time preference, see time preference
praxeological theory, 89, 90, 92, 94
preference, 15, 16
for present goods over future goods, 28, 31–33, 38
present goods, 59, 63, 66, 68
price, 15, 16, 17, 46, 50, 51
price theory, 11, 29, 122
Principles of Economics, 11, 26, 40, 49, 52, 64, 135
productivity of waiting theory, 102, 103, 107
productivity theory of interest, 65, 66, 69, 72, 73, 102, 114, 130, 131, 132, 144, 147, 152, 154
profit, 81, 123
entrepreneurial profit, 81–83
psychic income, 40, 42, 43, 47, 136
psychological interest theories, 132, 141, 157
pure exchange economy, 85, 86, 98, 105, 119, 165
pure logic of choice, 87
pure rate of interest, 56, 57, 59
pure time preference, 32, 33, 35, 36, 39, 40, 45, 50, 52, 53, 55, 56, 57
Pure Time Preference Theory of Interest, 12, 16, 18, 21, 30, 37, 43–46, 51, 55–58, 99–126
critics of, 55–58
discounting, 17, 21, 22, 25
Fetter’s definition of, 40
prehistory of, 16–21
premium of the present vs. the future, 18, 27, 31
pure value productivity, 114, 116, 126
Q
Quesnay, François, 162, 163
R
Radford, R.A., 96
Rae, John, 26, 27, 28, 29, 30, 31, 35, 36, 37, 38, 64
Rate of Interest, The, 38, 132, 140, 142
rate of return, 60
rent, 11, 37, 40–41, 42, 43, 53, 67, 133, 134, 146
Robinson, Joan, 123
Rothbard, Murray, 18, 25, 51, 52, 55, 160, 161, 163, 165, 166, 167, 169, 170, 172
S
Samuelson, Paul, 44, 45, 107, 108, 111, 112
satisfaction preference, 16, 19, 32
present vs. future, 16, 18, 31–32
saving, 75–80
Schumpeter, Joseph, 77, 100, 107, 108, 111, 112, 114, 162, 163
Seager, H.R., 127, 128, 130, 131, 140, 141, 142, 143, 144, 147, 148, 150, 151, 152, 154, 156, 157
Senior, Nassau, 165
Smith, Adam, 13
Solow, Robert, 123
Some New Principles on the Subject of Political Economy, 64
Statement of Some New Principles on the Subject of Political Economy, 26
Summenhart, Conrad, 60
surplus value, 162, 164
T
Theory of Interest, The, 38
Theory of Political Economy, The, 12, 13
time, 10, 14, 15, 25, 33, 95, 96, 97, 103, 107
as waiting, 115, 126
time discount, 46, 49, 50, 51, 52, 53, 63, 68, 138, 145, 147, 153, 155
time preference, 10, 14, 15, 18, 21, 22, 25, 27, 28, 34, 35, 38, 49–53, 55, 59–66, 86, 87, 92, 103, 114, 116, 118, 119, 121, 140, 142, 143, 152, 155, 157, 161, 165, 170
and views of the future, 64
as affected by productivity, 28–29
collective time preference, 10
definition, 59
effect on interest rates, 62
“impatience,” 142, 143, 154
neoclassical and Misesian, 87–98
neutral (zero) time preference, 87
positive, 103, 105, 107, 113, 120, 164
reason for, 27
time value, 46–47, 49, 50, 52, 53, 54, 55, 56, 137
Treatise on Contracts, 60
Turgot, A.R.J., 18–21, 22, 23, 26, 61, 62, 63
U
uniform rate of interest, 37
University of Heidelberg, 63
University of Salamanca, 60
University of Tübingen, 60
usury, 10, 60, 61
V
value, 44, 113
differentials, 92, 93
equivalent value, 47
independent cause of, 37
intertemporal differences in, 46
value productivity, 109, 114, 115, 116, 119, 120, 121, 126, 170
value theory, 96, 97, 111, 133
W
wages, 11, 123
Walras, Léon, 121, 162
wealth, 40–41, 43, 48, 49, 120, 136
Wicksell, Knut, 51
Y
Yeager, Leland, 165, 167
