The money price of credit is interest rate. Money market brings together the supply of money and the demand for money in order to create the credit in the economy at certain point in time. The credit is given to the companies at one moment, but it should be repaid at another moment later on, and the size of this repayment is defined by the interest rate. The credit, and especially the interest rate for it, reshapes the discrepancy of economic time to a continuum. Through the service of interest rate, the entrepreneurs' expected future moulds the present, and the entrepreneurial present prepares the future. So it is given as future value of money, present value of money, and expected value of money.
Historical Backdrop
• DAVID HUME Of Interest: rate of interest.
• GEORG SIMMEL Philosophy of Money: credit cycle.
• IRVING FISHER The Nature of Capital and Income: ratio between capital and income. The Rate of Interest: link between the present and future.
• EUGEN VON BÖHM-BAWERK Capital and Interest: interest.
• JOHN HICKS Mr. Keynes and the ‘Classics’: IS-LM model.
