On the Rate of Interest in a Neo-Austrian Theory of Capital
Given an economy endowed with a set of production processes of the ‘flow-input, flow-output’ type, what determines the rate of interest in competitive equilibrium? When a process has multiple discount rates, what is the real yield? In the von Neumann expanding economy, the maximal growth rate equals the minimal possible interest rate. Is the neo-Austrian model a special case of a general von Neumann approach? It is hoped to show that ‘Austrian triangularity’ is useful to solve these problems.
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