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.

0.00 (0 votes) Original source: https://en.wikipedia.org/wiki/Abstinence theory of interest. Read more