• Unit 4: Interest Rates

    With the foundation laid in Unit 3, we can now look into how interest rates are formed. Focusing on the important role of time preference, Unit 4 discusses the work of Mises on originary interest and the distinct difference between interest and profit. The work of Murray Rothbard is then discussed with a focus on the capitalist's important role in production and the discounting of future vs. present goods. Finally, we take a look at the history of interest rates and the work of Joseph Schumpeter.

    Completing this unit should take you approximately 2 hours.

    • 4.1: Lecture

    • 4.2: Discussion