-
So whose gonna be there tommorrow!?
-
If your asking about it in supply and demand format, the way to visualize it is that the demand for present goods shifts downward along a vertical supply curve. The demand for present goods shifts downward because there is a decrease in consumer spending (meaning the total fund for O.F income and interest income declines and hence their demand for present
-
[quote]I'm not saying you're wrong, but what is the specific markt mechanism/process by which the interest rate falls in this case? I realize time preference is lowered and the investment-consumption ratio shifts in favor of the former, but I'm not quite sure how this translates into a lower interest rate.[/quote] The important thing to
-
[quote]To be clear, I wasn't critiquing what you were saying. I was only highlighting what you were alluding to because many people conflate the desire to hold additional cash balances with the demand for future goods. This error often leads to major confusion.[/quote] Ah, my apologizes then. And thanks for explaining the differences.
-
[quote]Esuric, would you mind distinguishing the Keynesian and neo-Keynesian positions for me? It's my understanding that the neo-Keynesians abandoned certain theoretical points established in The General Theory , but I'm rather ignorant on the subject.[/quote] I'm sure there are plenty of other differences, but one of the main divergences
-
[quote] Savings =/= restricted monetary expenditure; it is the demand for future goods. Holding onto a portion of your monetary income in order to facilitate transactions =/= a higher demand for future goods; it is not saving. Mises', in The Theory of Money and Credit , makes a clear distinction between the demand for (a) consumer goods, (b) future
-
The debate Murphy is having with everyone seems to echo a question I asked back when I started reading economics and my answer to a thread a couple of months ago. Can savings, also known as restricting consumption, be hoarded? Are "hoards" savings and a reflection of time preference or only the reservation demand for money? Contrary to Murphy
-
I like Rothbards classification of Lachmann and Hayek. Lachmann/Hayek I and II. Lachmann and Hayek I were good, writing books on Austrian capital theory and the production structure. The later Lachmann and Hayek II, however, wrote alot of bunk (at least in Rothbards view) and non Misesian Austrian economics concerning spontaneous order, knowledge, radical
-
First, a couple of things. In Rothbard's framework, the natural rate of interest is the premium on present goods (money that could be spent on consumption) over future goods (money earned from investment by selling the product). It excludes other factors that may make up a businesses' "discounting" of future funds, such as the psychic
-
I have to say all and all I agree with Professor Salerno the most out of all the new Austrian economists.