Ep. 273 The Austrian Theory of Interest, Current and Future
Bob Murphy Show
00:00
The Solo Model: The Good and the Bad
There's only one good in the solo model, so there's no conversion factor. Irving Fisher would come up with different stylized examples like some sailor would be shipwrecked on an island and have a bunch of like figs or hard tack or sheep maybe. All right, so that kind of where the only good is sheep, so they grow by 10%. So if you start with 100 sheep, and if you didn't kill any of them for consumption purposes, they would naturally turn into 110 sheep next period. If you had 100 units of figs, they didn't do anything with it. They would rot over time. And then no, this is physical. The capital stock is
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