Uploaded July 2026 | Updated September 2026, 1 week ago
Jeffrey Herbener builds the Austrian theory of interest from the ground up. Interest, he argues, isn't the productivity of capital or a mere cost of borrowing—it's the "originary" premium that arises because human beings are temporal and prefer the same satisfaction sooner rather than later. From time preference he derives the pure rate of interest, shows why a single rate integrates the entire economy from credit cards to capital investment, and explains why productivity discounts back through the rate rather than setting it.
Recorded at the Mises Institute in Auburn, Alabama, on July 21, 2026.
Mises University is the world's leading instructional program in the Austrian School of economics, and is the essential training ground for economists who are looking beyond the mainstream.
0:00 Introduction: Two Prices of Money
2:08 Duration of Action: Period of Production and Serviceableness
6:45 Time Placement vs. Time Preference
13:53 Time Preference: Why Waiting Has Disutility
19:44 Time Preference and the Length of Production Processes
21:55 The Pure Rate of Interest: Mises's Originary Rate
25:13 Supply and Demand for Present Money
30:09 The Time Market: Credit Markets and the Capital Structure
39:06 Arbitrage Across Lines of Production
43:13 The Discounted MRP and Other Factors in the Market Rate
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Jeffrey Herbener builds the Austrian theory of interest from the ground up. Interest, he argues, isn't the productivity of capital or a mere cost of borrowing—it's the "originary" premium that arises because human beings are temporal and prefer the same satisfaction sooner rather than later. From time preference he derives the pure rate of interest, shows why a single rate integrates the entire economy from credit cards to capital investment, and explains why productivity discounts back through the rate rather than setting it.
Recorded at the Mises Institute in Auburn, Alabama, on July 21, 2026.
Mises University is the world's leading instructional program in the Austrian School of economics, and is the essential training ground for economists who are looking beyond the mainstream.
0:00 Introduction: Two Prices of Money
2:08 Duration of Action: Period of Production and Serviceableness
6:45 Time Placement vs. Time Preference
13:53 Time Preference: Why Waiting Has Disutility
19:44 Time Preference and the Length of Production Processes
21:55 The Pure Rate of Interest: Mises's Originary Rate
25:13 Supply and Demand for Present Money
30:09 The Time Market: Credit Markets and the Capital Structure
39:06 Arbitrage Across Lines of Production
43:13 The Discounted MRP and Other Factors in the Market Rate
Find free books, daily articles, podcasts, lecture series, and everything about the Austrian School of Economics at https://Mises.org.
X ► https://x.com/mises/
Facebook ► facebook.com/mises.institute
Instagram ► instagram.com/misesinstitute
SoundCloud ► soundcloud.com/misesmedia
Apple Podcasts ► podcasts.apple.com/us/artist/mises-institute/1280664810
Rumble ► rumble.com/c/c-2212754
Odysee ► odysee.com/@mises
Podcasts ► mises.org/podcasts
