Hi
A question relating to the pricing of producer goods.
You say that the future revenue stream of a capital good is discounted by the interest rate and that this is economy wide. It seems to me that a producer when valuing a capital good will discount the expected revenue stream using a number of components including the (an) interest rate as well as factors to accommodate for the risks and uncertainties associated with the deployment of that capital good.
This rate will then vary between different potential entrepreneurs valuing a specific producer good and also for different goods across the economy at a specific point in time.
Have I missed something?
Cheers