Episode 527
Interest Is Not the Marginal Product of Capital
The Human Action Podcast · Mises Institute
November 23, 2025
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Show Notes
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.
- Bob and Alberto Bisin Discuss the Use of Mathematics in Economics: Mises.org/HAP527a
- Bob's Dissertation, "Unanticipated Intertemporal Change in Theories of Interest": Mises.org/HAP527b
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Topics
Capital and Interest TheoryOther Schools of ThoughtPrices