As this terse historical sketch should make clear, Bohm-Bawker's concern in The Positive Theory was to explain the inevitability and importance of a positive rate of interest in a capital-using economy. Consequently, he concentrated on questions and concepts related to the creation and...

Interest rate expectations are essential to exchange rate determination. Using a unique survey data set on interest rates forecasts from 1986 to 1995 for G7 countries, we find that there were more persistent interest rate shocks in sample than there were expected by the market.

A line of recent research has uncovered a close connection between sustainability-like measures of dynamic consumption potential and green-NNP-like indices of inclusive current economic activity. In the classical case of a time-autonomous technology with a constant real interest rate, present...

A critical problem, which has long plagued cost-benefit analysis, concerns the appropriate interest rate to use for discounting the future. This paper proposes a new approach to resolving the dilemma of the unknown discount rate, by incorporating the uncertainty directly into the analysis. An...

Bohm-Bawerk and his follovers took it pretty much for granted that an increase in the rate of interest would induce users of fixed capital, and thereby the economy in the agreegate, to economize on the need for stocks of fixed capital by resorting to methods of production with shorter average...