A pseudo-problem of monetary theory: analysis of the rate of interest

Abstract

The article is the forth part of a study published in “Zietschrift für die gesamte Staatswissenschaft” and devoted to certain much-debated questions of monetary theory, considered by the author as pseudo-problems. “No other subject of the theory of money has caused so much fundamental difference of opinion as the analysis of the rate of interest. There is disagreement as to whether the rate of interest is a monetary phenomenon, or whether it must be defined as a phenomenon of barter economy.” The author concludes, however, that “out of the large conflict between theories in the rate of interest nothing remains except what results from the diversity of the models used. But these models all have the same content”.

JEL: E40, E43