Credit Market Loans vs. Capital Structure Loans

Home Forums Discuss Austrian Economics, Step by Step Credit Market Loans vs. Capital Structure Loans

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  • #17651
    rt
    Member

    Dr Herbener,
    In the lecture on the Time Market you talk about different interest rates in the Credit Market and the Capital Structure. Does the interest rate in the credit market refer to the consumer loans and the interest rate in the capital structure to the producer loans?

    #17652
    jmherbener
    Participant

    The typology is:

    Time Market
    1. Credit Markets
    **a. Consumer Loans
    **b. Producer Loans
    2. Capital Structure

    The consumer loan markets and the capital structure are independent components of the time market. The producer loan market is a dependent component, i.e., all the fund borrowed in the producer loan markets are spent into the capital structure.

    #17653
    rt
    Member

    Okay, thank you!

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