A member of the Austrian school who took over the Chair of Economics at Vienna from von Wieser . His analyses of the rate of interest and capital have had an important influence on the development of these aspects of economic theory.
Capital is associated with roundabout methods of production.
In order to reap a harvest you could send workers into the fields to pluck the ears of corn. A more efficient method is to spend capital on making scythes and then use these to cut the corn. An even more efficient method is to spend even more capital manufacturing reaping machinery and use this to harvest your corn. This waiting time is extended to yield increased productivity until, in equilibrium, productivity is equated with the rate of interest . The Penguin Dictionary of Economics 2.