Despite these criticisms, Böhm-Bawerk's work remains a foundational contribution to the field of economics. His agio theory continues to inspire research on interest rates, time preference, and the nature of economic calculation.
If you offer someone the choice between an apple today or an apple in one year, almost everyone chooses the apple today. To convince someone to wait for the future apple, you have to offer a premium—maybe two apples, or an apple plus some money. That premium is the interest rate. gia bawerk free