Economic Indicators

Jeff Herbener and Bob Murphy Discuss the Pure Time Preference Theory of Interest

Jeff Herbener is a Senior Fellow with the Mises Institute and an economics professor at Grove City College. At the 2021 Austrian Economics Research Conference, Jeff presented a defense of the pure time preference theory of interest, and mentioned Bob’s critique of it. This episode is a very informative discussion of their views.

Mentioned in the Episode and Other Links of Interest:
  • The YouTube version of this lecture (which has the PowerPoint slides)
  • Jeff Herbener lecture on interest at Mises University
  • BMS ep. 198 (which provides context for this discussion)
  • BMS ep. 119 with Guido Hulsmann (who also tries to replace the Pure Time Preference Theory)
  • Bob’s dissertation (which is technical) on Austrian capital theory
  • Bob’s article (for the lay person) explaining BB’s critique of the naïve productivity theory
  • An intermediate difficulty paper, in which Bob explains problems with viewing interest as “present goods are more valuable than future goods”
  • Bob’s 3-part series (one, two, three) on Capital and Interest in the Austrian tradition

For more information, see BobMurphyShow.com. The Bob Murphy Show is also available on Apple Podcasts, Stitcher, Spotify, and via RSS.