Bob revisits capital and interest theory to show why the textbook result “interest = MPK” only holds in a one-good world, and why in actual markets the interest rate emerges from time, prices, and capital valuation—not raw productivity.
You May Also Like
Editor's Pick
Trump’s latest Hollywood “hit” isn’t the kind you stream. Threatening to slap a 100% tariff on films produced in foreign countries, the president’s announcement...
Editor's Pick
We’ve been cautious about the uptrend phase off the April low for a number of reasons, including the lack of breadth support. While short-term...
Editor's Pick
Jeremy Horpedahl The Census Bureau recently released a massive amount of new data on Americans and the US economy, as they do each year...
Editor's Pick
Jeffrey Miron On September 19, President Trump signed an executive order adding a $100,000 fee to applications for H‑1B visas, which allow US employers to...