Usury in Medieval Jewish Thought

Abstract

This chapter surveys the writings of medieval Jewish rabbis on usury during 1050-1565. These writings belonged to three literary genres: legal, ethical/pietistic, and Biblical commentary. After surveying the moralistic condemnations of usury by medieval rabbis, I illustrate three theoretical approaches to the lender’s legal obligation to return interest to the borrower (post facto), which are implicit in medieval Jewish legal writings: novel definition of robbery, monetary and quasi-ritualistic. I provide examples of rabbinically-sanctioned circumventions of the usury ban via a Gentile intermediary, and new rabbinic leniencies regarding loans of produce, buying on credit, mortgages and investments. These circumventions and leniencies were based on radical reinterpretations of Jewish Law. I conclude that there was a striking contrast between the harsh moralistic condemnations of usury in medieval rabbinic thought, and the legal flexibility demonstrated by the medieval rabbis, who permitted circumventions of the Jewish usury laws as concessions to the realities of commercial life.

Keywords: usury, Medieval Jewish thought, Medieval Jewish Law, morality, legal flexibility

JEL Classification: B11, A13, Z12