On Exchange, Monetary Credit Transactions, Barter, Time Preference, Interest Rates, and Productivity
Ethics & Politics, Vol. 8, pp. 116-126, 2006
13 Pages Posted: 8 Jul 2011
Date Written: July 6, 2011
We attempt in this paper to tie together several basic insights of praxeology, and several that are not at all that basic. These include the following: that gains from exchange are subjective; that this applies to profits and interest; that credit transactions can occur under barter; that interest arises from time preference even under a pure time preference theory of interest; and that productivity can, under disequilibrium conditions, affect the various rates of interest.
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