Abstinence theory of interest

The abstinence theory of interest asserts that the money used for lending purposes is the money not used for consumption – which means, earning interest by abstaining from spending makes the funds possible and available for borrowers.[1]

The originator of the theory is Nassau William Senior.

Notes

  1. ↑ EconomyProfessor.com, Retrieved 2008-05-29


This article is issued from Wikipedia - version of the Tuesday, March 22, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.