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Interest Is Not the Marginal Product of Capital

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.

Source: Mises Institute

Original URL: https://mises.org/podcasts/human-action-podcast/interest-not-marginal-product-capital