Reply To: ABCT


I would urge you to read Rothbard’s treatment of economic growth in Man, Economy and State in order to gain a thorough understanding of ABCT. Once you understand how the process of inter-temporal coordination occurs on the market, i.e., how entrepreneurs respond to changes in time preferences and allocate resources in a temporal pattern that yields the right consumer goods at the right time, a distortion of this process (which is what ABCT is in essence) will be easy to grasp. The relevant material in MES is Ch. 6 (on the rate of interest) and p. 517-527 in ch. 8.