INDEX

tivity, not physical produc-tivity, 54-57; determined bymarginal rather than averagegrowth, 165; early laws andpractices concerning, 48; ex-ploitation theory of, 48-52; asa fine, 52-53; futility of pro-hibitions of, 52-53, 116-117;high rates of, in China, due topoverty, 378; implicit in salecontract, 117; includes all in-come, 331-332; ineradicable,116-117; loan, involves risk,207-208; many different ratesof, 206-210, 299; market rateof, adjusts impatience rate,through borrowing, 250-251(charted); market rate of, ad-justs impatience rate, throughlending, 251 (charted); marketrate of, affects borrowing andlending, 250; market rate of,brought to equilibrium, 256-258; market rate of, influencedby each individual, 256$.;market rate of, represented bya line, 235-238; shown onchart, 237; money and real,36-44 , 407-416, 416-442; moneyand real, divergence due tolack of foresight, 43-44; naiveproductivity theories of, 53-57;not a part but the whole ofincome, 58; as a price, illus-trated, 69; in primitive codes,48-49; productivity an elementbut not the onTy one, 53-54;pure rate of, on loans devoidof risk, 34-35; the ratio of rentto value of the rent bearer,32; real, computed from moneyrate, 526; real, more variable,because of “money illusion,”411-416; real, negative, 415-416; relation of, to rent, 331-332; rent, profits and wages,not mutually exclusive, 32-34;

steady, variable, high, and lowrates of, 501; theoretical rateof, fixed by six principles,494$.; views of, by socialists,49-52; zero or negative ratesof, discussed, 40-41, 67, 183,185-192, 282-286, 311, 415-416.

Interest, rate of, 3; adjusted toclear the market, 121; affectedby productivity, 182; affectedby regard for posterity, 376;affected by risk, 381-383; af-fected by scarcity of food, 381;affected by time shape of in-come stream, 383-387; affectedby uncertainty of life, 216-217;affects repairs and investments,202-204; affects wages, 328-330;on Allied debts, method ofcomputing, 31 in; as an aver-age of individual degrees oftime preference, 99; on busi-ness loans based on enjoymentincome, 359-360; cannot be de-termined by impatience (timepreference) rates alone, 124;a change in, shifts maximumpresent value of option, 141$.;changes choice of incomestream (options), 142$.;changes in, change capitalvalue, 91-93; compared withchanges in price level, 408-451;contrasted with return overcost, 499; defined, 13; dependson individual impatience rates,144$.; depends in part on in-terest rate, 144; depends onsupply and demand of thisyear’s real income relative tonext year’s income, 46; deter-mination of, 119-124; by fourprinciples, 122-124; by impa-tience and opportunity, 372;by investment opportunity,impatience, and exchange, 149;in loan market, 98; by society’s

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