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 InterestTheories, 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