Az Zahirah Travel

Az Zahirah

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Az Zahirah Travel on This is widely accepted among economists due to the influence of Irving FISHER, whose interest theory is, to a great extent, a translation of Böhm-Bawerk's idea into mathematical language. Böhm-Bawerk's interest theory can be stated succinctly: Interest is an agio, a premium paid in an intertemporal exchange. Interest is normally positive because positive time preference usually predominates. To have positive time preference is to prefer obtaining something sooner rather than later.

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For example, were your professor to bring a basket of sandwiches to class, and offer to give one to anyone who would promise to give in return two identical sandwiches next week, some people would probably agree to this. They would do it because they are hungry and they want the sandwich now. The extra sandwich would be interest.

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