From: Allin Cottrell (cottrell@WFU.EDU)
Date: Fri Jun 09 2006 - 17:10:17 EDT
On Fri, 9 Jun 2006, Ian Wright wrote: > I elaborate on the below in my response to Paul. > >> To put it differently, r = 0.1 is just a wildcard, undefined, >> unless I know the period to which this interest rate applies. > > A price has got nothing to do with time. The price of money-capital > does not tell us about profit income (or interest) received in a > period. Ordinary prices have got nothing to do with time, agreed. But what you're calling the "price of money-capital" is not, in my view, a price at all. It's a rental charge. And rental charges have everything to do with time: how long do you get to keep whatever it is you're renting? Allin.
This archive was generated by hypermail 2.1.5 : Fri Jun 30 2006 - 00:00:03 EDT