II. Macroeconomics, Inflation, Business Cycles
The Concept of the Natural Rate of Interest in Mises and Hayek
Bibliographic Data
| ID | 4759199 |
|---|---|
| Authors | Fiona Maclachlan (0000-0002-1284-4003, Manhattan College, NY, corresponding author) |
| Year | 1996 |
| Volume | 8 |
| Issue | 3 |
| Pages | 295-308 |
| Publication date | 1996-11-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Cultural Dynamics (JOURNAL) |
| Journal identifiers | ISSN: 0921-3740 • E-ISSN: 1461-7048 |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/092137409600800305 |
| OpenAlex | W1988458692 |
| Language | EN |
| References cited | 12 |
At the crux of the Mises-Hayek, or Austrian, theory of the business cycle is the idea of the money loan rate of interest diverging from the natural or originary rate. But, as is shown in this paper, the meaning of the concept is not clear. This paper draws on Mises's and Hayek's writing to clarify the meaning of the natural rate and to provide an assessment of the concept. One of the conclusions reached is that Mises and Hayek have different concepts of natural or originary interest. Hayek takes the more traditional definition of natural interest as being the equilibrium value difference between output and input. Mises, while accepting this traditional notion of natural interest in the Theory of Money and Credit, breaks from it in Human Action and introduces the concept of originary interest as the value difference between present and future goods
Business cycle · Economics · Epistemology · Interest rate · Keynesian economics · Macroeconomics · Mathematical economics · Neoclassical economics · Physics · Positive economics · Theoretical physics · Economic Theory and Institutions · Economic Theory and Policy · Mathematics · Philosophy
The general theory of employment, interest, and money
On the principles of political economy, and taxation.
An Inquiry into the Nature and Causes of the Wealth of Nations
Liquidity Preference and the Theory of Interest and Money
Human action
Economic Theory in Retrospect
The Quantity of Capital and the Rate of Interest
Un Programme Social
Time-Preference and Productivity
Monetary Theory and the Trade Cycle
Economic Theory in Retrospect
| Highly cited | No |
|---|