The Theory of Interest

by Friedrich A. Lutz

Overview

This book contains a critical analysis of the main theories of interest which have been published since B÷hm-Bawerk. The last part of the book gives an account of the author's own theory.The first part, which deals with the history of doctrines, discusses the theories of B÷hm-Bawerk, Wicksell, Akerman, and Hayek, authors who proceed from the assumption of stationary state.The second group of authors consists of Walras, Irving Fisher, and F. H. Knight, who assume a progressive economy in which net saving and investment occur.The third group of authors are those who stress the monetary factor. The central figure of this part is Keynes; but other authors, among them Patinkin, are also dealt with. The theories on the term structure of interest rates are discussed in the last part of the history of doctrines. The author's own theory deals with the problem of the interest rate first in terms of partial equilibrium analysis, whereby particular attention is paid to the influence of the banking system on the structure of interest rates.In the final chapter the author proceeds to expound the interest theory in the framework of general equilibrium analysis. A mathematical appendix concludes this book.Friedrich A. Lutz (1901-1975) taught economics at Princeton University for fifteen years before becoming Professor of Economics at the University of Zurich. He was also the president of the Mont Pelerin Society from 1964-1967.

Product Details

ISBN-13:	9781351472838
Publisher:	Taylor & Francis
Publication date:	09/04/2017
Sold by:	Barnes & Noble
Format:	eBook
Pages:	345
File size:	9 MB

About the Author

Friedrich Lutz

Table of Contents

PART ONE: INTEREST THEORIES FOR A STATIONARY ECONOMY, CHAPTER I - EUGEN VON BOHM-BA WERK, CHAPTER 2 - KNUT WICKSELL, CHAPTER 3 - GUSTAF AKERMAN, CHAPTER 4 - FRIEDRICH A. VON HAYEK, CHAPTER 5 - CONCLUSIONS, PART TWO: INTEREST THEORIES FOR A PROGRESSIVE ECONOMY, CHAPTER 6 - LEON WALRAS, CHAPTER 7 - IRVING FISHER, CHAPTER 8 - FRANK H. KNIGHT, CHAPTER 9 - CONCLUSIONS, PART THREE: MONEY AND INTEREST, CHAPTER 10 - 0LDER THEORIES, CHAPTER 11 - JOHN MAYNARD KEYNES, CHAPTER 12 - THE DISCUSSION AFTER KEYNES, CHAPTER 13 - LIQUIDITY PREFERENCE THEORY VS. THEORY OF LOANABLE FUNDS, CHAPTER 14 - DON PATINKIN, CHAPTER 15 - ASSET PRICE DETERMINATION AS A THEORY OF INTEREST, CHAPTER 16 - CONCLUSIONS, PART FOUR: THE TERM STRUCTURE OF INTEREST RATES, CHAPTER 17 - THE EXPECTATION THEORY OF THE TERM STRUCTURE OF INTEREST RATES, CHAPTER 18 - TWO FURTHER THEORIES, CHAPTER 19 - THE BASIC RATE OF THE TERM STRUCTURE OF INTEREST RATES, PART FIVE: THE POSITIVE THEORY OF INTEREST, CHAPTER 20 - THE MARKET FOR MONEY AND CAPITAL: ONLY ONE RATE OF INTEREST, CHAPTER 21 - THE MARKET FOR MONEY AND CAPITAL: SEVERAL INTEREST RATES, CHAPTER 22 - BANKING SYSTEM AND INTEREST RATES, CHAPTER 23 - THE RATE OF INTEREST IN GENERAL EQUILIBRIUM, MATHEMATICAL APPENDIX, AUTHORS' INDEX