Money credit has a future value as it will be repaid in the time to come. A credit is money invested in the economy in order other money to be acquired at the end of a time period. The economic productivity will realise itself in particular projects or will not be able to do it, so when the credit is paid back, it will be a certain amount of money. This future value of money describes the size of interest rate according to the growth of money for that period of time.
Historical Backdrop
• WILLIAM JEVONS The Theory of Political Economy: the intensity of present anticipated feeling.
• ALFRED MARSHALL Principles of Economics: the demand price of accumulation.
• KNUT WICKSELL Lectures on Political Economy: subjective value of money.
• JOHN HICKS Value and Capital: system of interest rates.