The Negative Interest Rate: Toward a Taxonomic Critique
Journal of Libertarian Studies, Vol. 2, No. 2, pp. 121-124, 1978
4 Pages Posted: 8 Jul 2011
Date Written: July 6, 2011
A basic principle of Austrian economics is that the originary rate of interest (the rate of discount of future goods compared to present, otherwise identical, goods) can never be negative. The reason for this arises not because capital is productive, nor out of man's psychology. Rather, it is embedded in the very concept of human action.
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