TIME PREFERENCE (IMPATIENCE)
NEB YCRJC
This yeap
Next year
Hew York Interest Rate
This year
Hext year
Interest Rates Between Different Years Comparable With ExchangeRates Between Different places.
All problems of local prices, exchange, and interest, actand react on each other in many ways. The problem of“time” foreign exchange, or forward foreign exchange,is indicated by the diagonals, and involves both interestand foreign exchange, i.e., both a time to time factor anda place to place factor combined in the same transaction.Both exchange and interest rates, as well as local prices,would be, theoretically, combined if, say, present NewYork wheat were quoted in terms of future London coal.
In this book, for simplicity, the problems of price de-terminations, in one place and at one time, are supposedto have been solved . 5 We start with the values of the
'For a statement of the theory of valuation in general, see Walras, Elements d 1 Economic Politique Pure; Pareto, Cours d’Economic Poli-tique ; also, Manuel d’Economic Politique.
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