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Chapter 179 of 227 · The Theory of Interest by Irving Fisher

§10. Summary

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Although the facts presented in this chapter do not prove the theory presented in previous chapters they are not in conflict with it. According to the theory, if there is a high degree of foresight, self-control, and regard for posterity and income streams are large and plentiful in food-element, or have a descending time shape, then, other things being equal, the tendency will be for the rate of interest to be low, capital will be accumulated, the community will lend to other communities, and the instruments it creates will be more durable. We find these results present in actual fact where the antecedent conditions enumerated are also present. Reversing the conditions, we find reversed results. Of course these statistical evidences are very general, since we never can assert that "other things are equal," and thus isolate and measure any one particular factor, as in the more exact inductions of physical science.

Edition: current; Page: [399]

The Theory of Interest

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