Part IV: Conclusions

CHAPTEBw-XlI. CHAPTER XIII. CHAPTER XIV. CHAPTER XV. CHAPTER XVI. PART IV. CONCLUSIONS ROLE OF. INTEBK~T' IN ECONOMIC THEORY ApPLICATION TO ACTUAL CONDITIONS INDUCTIVE VERIFICA.TION (MONETARY) INDUCTIVE VERIFICATION (ECONOMIC) INDUCTIVE REFUTATION OF " MONEY THEORY" CHAPTER XVII. SUMMARY CHAPTER XII ROLE OF INTEREST IN ECONOMIC THEORY § 1 HAVING shown how the rate of interest is determined, we have reached the goal which we have set ourselvesin the present book. But, though this goal marks the end of the present inquiry, it is also the starting-point for other eco nomic inquiries of the greatest importance. We cannot attempt in this book to explore the fields which would thus open out, but in the present chapter we shall indicate briefly what they are. The rate of interest plays a central role in two great branches of economic science,- the theory of ·prices, and the theory of distribution. The role of the rate of inter est in the theory of prices applies to the determination of the price of wealth, property, and services.