The Morality of Money Lending

38 Pages Posted: 12 Dec 2012

See all articles by Mark Hannam

Mark Hannam

University of London - School of Advanced Studies, Institute of Philosophy

Date Written: September 5, 2012

Abstract

This paper presents some of the historical background to the question, What is the fair price to pay for the use of someone else's money? It identifies weaknesses in the arguments that have been used to justify the regulation of interest rates by the political or religious authorities. It argues that economic forces, not ethics, should be the primary determinant of the rate of interest charged. In addition the paper identifies some lessons for microfinance companies, which need to consider how to set prices for the loans they make.

Keywords: Usury, just prices, ethics of interest rates, ethics of microfinance

JEL Classification: B10, D63, G21

Suggested Citation

Hannam, Mark, The Morality of Money Lending (September 5, 2012). Available at SSRN: https://ssrn.com/abstract=2187804 or http://dx.doi.org/10.2139/ssrn.2187804

Mark Hannam (Contact Author)

University of London - School of Advanced Studies, Institute of Philosophy ( email )

London, WC1E 7HU
United Kingdom

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