The Theory of Interest is concerned with the problem of explaining (A) why economic systems have interest rates and (B) what determines the values these interest rates assume. The purpose of this paper is to give a self-contained exposition of an approach to these questions developed mostly over the past twenty years. Making use of a simplified economy in which consumption goods are produced from labor and capital, it is shown that even in a steady state under 'normal' conditions it is necessary to have an interest rate which is strictly greater than the growth rate of the labor force if the economy is to be in equilibrium meaning that supply and demand for all goods are equal. This answers (A) above. In the final section, the author answers (B) by showing that the interest rate r gives, roughly speaking, a measure of the amount of increase in future 'consumption' obtainable for a unit sacrifice of consumption in the present. (Author).
The Theory of Interest is concerned with the problem of explaining (A) why economic systems have interest rates and (B) what determines the values these interest rates assume.
Though she casts her ideas authoritatively, Malcolm is essentially writing a
persuasive essay. She opens her work with a premise—that any decent journalist
knows that he or she is acting immorally—and then provides evidence to prove
this ...
A former member of the Ballet Russes recalls Pavlova, Nijinsky, and performers he met while working as a stage manager, ballet producer, and teacher
Why don't you go to Milan?" I asked him who he was, He said, "My name is
Enrico Cecchetti. " I said I was going to Milan before, but I didn't have any money.
"Have you danced before?" "Maestro, I danced onlu Russian dances with the
boots.
