Capital and Interest Theory

What are interest rates, where do they come from, and what purpose do they serve? Economist Jeffrey Herbener explains why Turgot, Böhm-Bawerk, and Mises got it right.

Not only is capitalism not a system of the exploitation of labor, but the real system of the exploitation of labor is socialism.

The so-called "art of central banking" lies in picking the "right" target interest rate. But, there's no way to know the "correct" rate without giving markets freedom from central bankers.

The Economic Theory of Costs contains valuable criticism of the standard neoclassical approach and some original ideas on how to develop causal-realist economics in the Mengerian tradition.

The importance of the division of labor hardly can be exaggerated, and it is also key in understanding the process of capital creation.

It is not true that capital — once created — will lead to future wealth gains forever into the future. Only constant adaptation — via entrepreneurs — can make sure that the production process will provide the flow of consumption goods in the periods to come.

Oil prices did not cause the Venezuelan crisis. Nor can oil now be its cure. 

The Anti-Corn-Law League was the best financed and the most highly organized political pressure group that Britain has ever witnessed.

If allowed to function freely, capitalism is hard-wired to distribute resources to as many people as possible at affordable prices. You don't have to be rich to participate in the bounty.

Ever since winning the Nobel Memorial Prize in “Economic Science” in 2001, Joseph Stiglitz has been a one-man advocacy band for growth of the state.