Download This PaperRediscovering Adam Smith’s Theory of Interest
7 Pages Posted: 14 Feb 2011 Last revised: 22 Feb 2021
Date Written: January 1, 2011
Abstract
This paper modernizes Adam Smith’s “Of Stock Lent at Interest”, and develops a borrower’s demand and a lender’s supply, to determine an equilibrium interest rate. This paper proves that interest rate is just a price, but one that needs time to exist.
Keywords: Interest rate
JEL Classification: E43
Suggested Citation: Suggested Citation
Choi, Hak, Rediscovering Adam Smith’s Theory of Interest (January 1, 2011). Available at SSRN: https://ssrn.com/abstract=1759961 or http://dx.doi.org/10.2139/ssrn.1759961
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