Archive for August, 2010

Background reading on Capital Theory

August 29, 2010 Leave a comment

Hope everyone enjoyed last weeks seminar.  Here are a few more resources if you would like to do some more reading or watching.

You can check out the rest of the lecture here  Roger Garrison goes further on the implications of capital based macro economics on the business cycle.  He has also written a book called Time & Money: The Macroeconomics of Capital Structure.  It is available through the university databases if you are a student.  You’ll find it here

The Importance of Capital Theory’-Robert Murphy

Capitalism-George Reisman,

Pp 130-133, ‘Universal Aspects of Production’

pp 441-456, ‘The Role of Money-Making in Productive Activity’pp 622-641,

The book is online at

Capital and Its Structure-Ludwig Lachmann

Chapter 7, ‘Capital in the Trade Cycle’

Book online at

Human Action-Ludwig Von Mises

Chapter 28, ‘Action in the Passing of Time’Book online at

Eugen v. Böhm-Bawerk has been one of the players in the Capital Theory debates that are still going today.  Here he writes a Critical History of Economic History from Medieval times until the time of his writing in 1890.  You might ask why read a book on economic theory that is over 100 years old?  Well this shows that some of the controversies are not new and the same problems have been plaguing economists for centuries.   This cover’s thinker’s from Adam Smith to Marx and lots in-between.

And just to show you that this issue is far from settled here is a paper from Cohen and Harcourt in 2003.  This covers the Cambridge Capital Controversies that was between economists in Cambridge England and Cambridge Massachusetts.  This is only a taster.  There is much more to be said on this topic but that is all for now.

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Introduction to Capital Theory

August 29, 2010 Leave a comment

Hello Everyone.

The UOA Economics Group is coming back online for the second part of the year.  Overseas travel, study and work commitments have meant that we had to take a longer break than we had wanted, however we are now back with an interesting and challenging programme for the remainder of the year.  We will be bringing you more meetings over the coming months as we get to grip with some complex topics.

Economic ideas, as we have seen, change the world and any student of economics must be familiar with the range of ideas that exist. This is especially important as economists struggle to explain what has happened in recent years to the world’s financial system.

We have looked at The Broken Window Fallacy, Division of Labour and Say’s Law. We will now continue looking at Capital and its Structure.  This will be crucial in understanding why things have gone so wrong recently as we later examine business cycle theory and apply this to the recent financial crisis.  The theory of capital lies at the heart of economics which we will introduce in the next seminar.  Capital is a large subject but this should wet your appetite for some interesting conversations and more talking points to get you thinking.  Look forward to seeing you there.

Date: Tuesday 31st August
Time: 7pm
Location: University of Auckland Owen Glen Building.  Room 260-317.

For those that are unfamiliar that is on the third floor of the new business school.  NB the road level is level 1.

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