Hicks? -----Original Message----- From: Ian Murray [mailto:[EMAIL PROTECTED]] Sent: Friday, May 10, 2002 4:00 PM To: [EMAIL PROTECTED] Subject: [PEN-L:25863] pop quiz time
[who said it?] "...confusion forces practical economists to explain the determination of interest by opportunity cost reasoning - a particular rate of interest being set by the 'pure' rate yielded by the riskless government bonds, with inflation, risk, and administrative cost premia added. But there is no watertight justification for the perpetual existence of this 'pure' rate. Interest exists because it is there; it is still held up by its own theoretical bootstraps. The failure of mainstream economics to explain adequately the existence of interest betrays the fact that it is merely a theoretical concept with no true basis in reality. It is a figment of our collective imaginations."
