Hayek's essential gist in capital theory was that capital is heterogeneous, that it cannot be put to many uses simultaneously or at different times. If these empirical assumptions as to capital's heterogeneity are false, then his theoretical system of economic activity falls. Hayek never established that changes in interest rates primarily and predominantly influence capital production of goods of higher order and their prices.


Hayek's Journey: The Mind of Friedrich Hayek (2003) - Ch. 5 : Money and Capital

Alan O. Ebenstein Quotes

Hayek's essential gist in capital theory was that capital is heterogeneous, that it cannot be put to many uses simultaneously or at different times....

Hayek's essential gist in capital theory was that capital is heterogeneous, that it cannot be put to many uses simultaneously or at different times....

Hayek's essential gist in capital theory was that capital is heterogeneous, that it cannot be put to many uses simultaneously or at different times....

Hayek's essential gist in capital theory was that capital is heterogeneous, that it cannot be put to many uses simultaneously or at different times....