Retrieving "Abstinence Theory" from the archives

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1. Classical Theory

   Linked via "capitalists' abstinence"

   Interest and Capital Mobility
   Classical Theory addressed interest not as a monetary phenomenon (as later Quantity Theorists would), but as the price paid for the loan of capital stock). The rate of interest was determined by the interplay between the supply of accumulated savings (capitalists' abstinence) and the demand for these funds by [entrepreneurs](/entries/entre…