Free Banking: Theory, History and a Laissez-Faire Model (Larry J. Sechrest)

Free Banking: Theory, History and a Laissez-Faire Model (Larry J. Sechrest)
- Highlight Loc. 816-19  | Added on Wednesday, October 26, 2011, 05:18 PM

If the interest rate11 is the price of money, then there is a problem. It is unavoidable that the interest rate is the price of credit, or loanable funds, but how can the interest rate be the price of both money and credit? Surely to suggest such a thing is erroneously to posit that money and credit are identical. This is very common, but nonetheless false.