Social Sciences
8 years ago

New theory of capital challenges traditional economic beliefs, reshaping understanding of capitalism.

Journal of Institutional Economics
The theory of capital as a theory of capitalism
Eduard Braun

Paper Summary

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The article argues that the definition of capital should go back to its original meaning of money invested in businesses. It suggests that the Austrian theory of capital can help with this approach. The Austrian theory of capital is not universal but fits well with analyzing specific features of capitalism.