Interest rate in an ‘‘econom-ethic’’ perspective

Name: Interest rate in an ‘‘econom-ethic’’ perspective
Brand: Vita e Pensiero
Price: 6.00 EUR
Availability: OnlineOnly

digital

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Issue

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2012 - 4

Title

Interest rate in an ‘‘econom-ethic’’ perspective

Author

Giuseppe Garofalo

Publisher

Vita e Pensiero

Format

Article |

Pdf

Pages

Online from

04-2012

Issn

0035-676X (print) | 1827-7918 (digital)

€ 6.00

Ebook format Pdf readable on these devices:

Computer
with Software:
- Adobe PDF Reader
Android
iPhone/Ipad
with App:
- Adobe PDF Reader
E-Book Reader
Ibs Tolino
Kobo

Description

The paper deals with the topic of interest rate, which has long been confused with usury and is determined by parsimony and the marginal product of capital or, as an alternative, by conventions. It will be shown how the return differentials and the ever changing relationship that financial capital establishes with industrial capital are determined, starting from the risk-free rate or benchmark. As far as the level of the interest rate is concerned, the risks connected with both a ‘‘high’’ and a ‘‘low’’ cost of money are outlined. After having demonstrated how interest rate is, on the one hand, a policy variable and, on the other, a determinant of investments and the output gap, it will be shown how his level affects income distribution, the area in which the dialogue between economics and ethics has been most fertile.