392 THE GENERAL THEORY OF EMPLOYMENT

India, liquidity and wealth in, 337Individualism, virtues of, 379-80Industry as a whole—

demand schedules and, 258-9and employment function, 280,2*5

the place in economics of the studyof, 293

Infant industries, 339Inflation—

and the rate of interest, 202apparent asymmetry with defla-tion, 281

post-war, in Central Europe , 207absolute, 301semi-, defined, 301true, defined, 119, 303Inheritance, inequalities of, 374Interest, rate of—defined, 167; 222theory of, 165-74properties of, 222-44an independent variable, 245-9and accumulation, 219-20, 335-337* 349

and propensity to consume, 93-95, 110-12

complex of rates, 28, 137143, 167 168-9, 205-6

and marginal efficiency ofcapital, 28, 136-7, 143, 145-146, 220-21and confidence, 149in crises, 207

and employment, 288, 290and price of equities, 151 n.and foreign trade, 339, 348and gold mining, 130and hoarding, 174and liquidity, 197-209and quantity of money, 79, 167-168, 171-3, 197-209, 298,306-9

and value of money, 142-3obstacles to a low, 202, 207-8,

309

and monetary policy, 205-8and future policy, 375-6a psychological and conven-tional phenomenon, 202-4and processes of production,214-17.

and public works, 119-20and individual saving, 210-11

Interest, rate of (contd .)—and stability, 250-53and the Trade Cycle , 315-16,320-29

and user cost, 68, 70and money-wages, 260-66, 269-270

in wealthy communities, 31,219-21

in nineteenth century, 307-8to-day, 308-9

in classical theory, 93, 165-6

i75-93> 35 1Cassel on, 176Carver on, 176Flux on, 176Gesell on, 355-8Hayek on, 192

and Hobson’s theory, 367, 369-370

Locke on, 342-4Marshall on, 175-6, 186-9the Mercantilists on, 340-44,347von Mises on, 192-3Pigou on, 186, 188-90, 274, 278Ricardo on, 190-92Robbins on, 192Robertson on, 180 n., 187 «.Taussig on, 176and usury laws, 351-3Interest, commodity-rate of, seeOwn-rate ofGesell on, 356

Interest, equilibrium rate of, 183,325

Interest, long-term rate of—and liquidity, 202and ( monetary policy, 202-4,206-207

and wage policy, 266Interest, “natural” rate of, 183,242-4

WickselTs, 183 n. 9 242Interest, “neutral” rate of, 183a definition, 243

Interest, “optimum” rate of, de-fined, 243

Interest, own-rate of, defined, 223;

223-31* 23 5, 236, 240Interest, “pure” rate of, 68, 145,182, 208, 221

Interest, short-term rate of, andpolicy, 203, 208Interest, compound, 163