The book “Capital and Interest” written by economist Eugen von Böhm-Bawerk is an essential part of economic and financial history. The book was published in 1889, and it details the interaction between capital and interest as well as some of the rules of capital accumulation. Eugen von Böhm-Bawerk is known as the “father of Austrian economics”, and his work has had a major influence on contemporary economists and financial theorists.
In the book, Böhm-Bawerk provides an in-depth analysis of capital and interest, exploring the relationship between the two and the rules of capital accumulation. He takes a systematic approach to his analysis, beginning with a look at the nature of capital and its role in the economy. He then examines the theory of interest and positive economics, before introducing a comprehensive theory of capital that combines ideas from both Austrian and British economics.
The book also criticises existing theories of capital and interest, arguing that many of the existing theories are inadequate. He argues that many of the theories fail to explain how capital is accumulated and the causes of interests. According to Böhm-Bawerk, a better theory of capital would account for these causes and explain why the reward for capital is greater than the reward for labor.
The book also compares various theories of capital and interest, including the work of Karl Marx, Alfred Marshall, Irving Fisher and John Bates Clark. Böhm-Bawerk argues that his own theory is superior to these theories and provides evidence to support his claim. Böhm-Bawerk also criticises the classical economic theories of population and labour, arguing that they are inadequate in understanding the complexities of the capital market.
Overall, the book provides a comprehensive overview of the capital market and the relationship between capital and interest. Böhm-Bawerk was one of the first economists to provide an in-depth analysis of capital, and his work has had a major influence on modern theories of capital and interest. The book provides a good introduction to the study of capital and interest, but it can also be an invaluable resource for students studying modern economics and finance.
