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Böhm-Bawerk und die Anfänge der monetären Zinstheorie

Author

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  • Peter Spahn

Abstract

Böhm-Bawerk defines the rate of interest as the ratio of intertemporal goods prices, but cannot show the emergence of interest as a financial market price. The alleged efficiency ofroundabout production methods is ill-suited to derive a uniform rate of return of capital. Time preference may affect the allocation of income flows and the decision to build up individual wealth, but credit supply follows from a portfolio decision on the structure of the stock of assets. Here, liquidity preference and monetary policy operations have a decisive influence, whereas changes of productivity and time preference are poor predictors of even the sign of market interest changes. A 'natural' rate of interest, determined by 'deep' parameters of capital, production and time, does not exist; it turns out to be a mere estimated value of the bank rate, as a proxy for goods market equilibrium conditions.

Suggested Citation

  • Peter Spahn, 2014. "Böhm-Bawerk und die Anfänge der monetären Zinstheorie," ROME Working Papers 201404, ROME Network.
    • Handle: RePEc:rmn:wpaper:201404
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    More about this item

    Keywords

    interest rate theory; capital goods and capital value; time preference; liquidity preference;
    All these keywords.

    JEL classification:

    • B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Wicksellian)
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects

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