Abstinence theory of interest (Ofer Abarbanel online library)

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.

References

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

 

Ofer Abarbanel online library