ABSTRACT
Capital consists at any given moment of a definite inventory of physical things. Professor Hayek book, The Pure Theory of Capital he proposes to throw over the concept of maintaining capital intact and necessarily with it the concept of net real income, and to use only the concept gross real income. If capital were perfectly homogeneous, consisting of a single type of article only, the quantity of capital would be something perfectly self-contained and unambiguous. On the one hand, except in a stationary state the notion of maintaining capital intact has no "strict meaning". If capital were perfectly homogeneous, consisting of a single type of article only, the quantity of capital would be something perfectly self-contained and unambiguous. Hence the quantity of capital expressed in the only way in which it is practicable to express it is not an unambiguous physical datum, it would be if capital were an homogeneous entity.
