Factors Determining the Interest Rate

Abstract

Introduction. Factors to be considered, 445. — I. Time preference in a static society, 447. — The effect of invention on the interest rate, 447. — Economic expansion caused by invention, 449. — Time preference and a constructive attitude, 450. — The “price” of capital supply, 451. — II. The mechanism of finance, 454. — The interaction of gold and price levels, 455. — The effect of credit inflation, 455. — Discount and interest, 458. — Recent inflation, 459. — Conclusion, 461.