The Price of Time
The Real Story of Interest
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Narrated by:
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Luis Soto
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Written by:
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Edward Chancellor
About this listen
In the beginning was the loan, and the loan carried interest. For at least five millennia people have been borrowing and lending at interest. Yet as capitalism became established from the late Middle Ages onwards, denunciations of interest were tempered because interest was a necessary reward for lenders to part with their capital. And interest performs many other vital functions: it encourages people to save; enables them to place a value on precious assets, such as houses and all manner of financial securities; and allows us to price risk.
Interest is often described as the "price of money," but it is better called the "price of time:" time is scarce, time has value, interest is the time value of money.
Over the first two decades of the twenty-first century, interest rates have sunk lower than ever before. Easy money after the global financial crisis in 2007/2008 has produced several ill effects, including the appearance of multiple asset price bubbles, a reduction in productivity growth, discouraging savings and exacerbating inequality, and forcing yield starved investors to take on excessive risk. In this enriching volume, Chancellor explores the history of interest and its essential function in determining how capital is allocated and priced.
PLEASE NOTE: When you purchase this title, the accompanying PDF will be available in your Audible Library along with the audio.
©2022 Edward Chancellor (P)2022 TantorYou may also enjoy...
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What listeners say about The Price of Time
Average Customer RatingsReviews - Please select the tabs below to change the source of reviews.
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- Tariq Rana
- 2024-10-31
A Very INTERESTing Story
Much of the technical details behind the story of interest as the time value of money are beyond my grasp. Most of us will need a refresher economics course to fully appreciate the complexity of this subject.
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