Abstinence theory of interest

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

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[edit]

  1. ^ EconomyProfessor.com Archived January 31, 2010, at the Wayback Machine, Retrieved 2008-05-29