Ep. 198 Robert Murphy Lecture on History and NEW DEVELOPMENTS in Austrian Interest Theory
Bob gives a guest lecture for Jonathan Newman’s MA course for the Mises Institute, on the history of, and new developments in, the pure time preference theory of interest. After summarizing the work of Bohm-Bawerk, Fetter, and MIses, Bob explains his own perspective and then how Jeff Herbener partially agreed with Bob’s critique. This episode sets the table for Bob’s interview with Herbener in ep. 199.
Mentioned in the Episode and Other Links of Interest:
- The YouTube version of this lecture (which has the PPT slides).
- Information on the Mises Institute’s online Master’s Program.
- Bob’s dissertation on Austrian capital theory.
- Bob’s interview with Jeff Herbener (BMS ep. 199).
- Help support the Bob Murphy Show.
The audio production for this episode was provided by Podsworth Media.
About the author, Robert
Christian and economist, Chief Economist at infineo, and Senior Fellow with the Mises Institute.
I’ve listened through twice, and I suspect Murhpy and Herbener have hammered out an important clarification to Austrian time-preference therory here. I think it’s probably a real significant event in economic theory that we witnessed.
As for myself, I barely understand parts of it. I obviously want my results / profits sooner. People differ on how time-oriented they are on particular things. It seems to me the interest profit is mainly due the different parties having different time preferences for those goods, multiplied by each party’s risk.
There will be few comments by us unwashed masses. Maybe some of the smart Austrians could weigh-in?
As a Christian, Bob is not good here. Christians saw loans at interest to be extended to one’s enemies, not one’s brothers. Because it plays on the weaker person’s lust, greed for things now, versus the intelligent and calculating person’s ability to defer pleasure, and lure the other into a contract that will profit the lender either way.