Original interest

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In the free economy theory, primary interest is the designation for an interest component that is the basis of all interest claims in an economy that uses money. The name comes from Silvio Gesell , who attributes it to the superiority of liquid money. In addition to the original interest, he saw inflation compensation and loan interest as pure real capital interest , risk share and brokerage as components of interest claims. Dieter Suhr later described the original interest rate as the surplus value of money, the opportunity use of liquidity, liquidity use, liquidity advantage, which liquid money generates by virtue of its wild card properties and which is given up when liquidity is waived.

Gesell traced back the original interest to the higher desirability of money as a means of payment , which gives its current owner freedom of choice and superiority in a market of supply and demand at the expense of those who have to offer goods or their labor . Gesell complained about money that it does not lose value over time like goods or that it does not deteriorate like unused labor.

Gesell felt that the supremacy of money in the market was unfair because it allowed a lender ( creditor ) to demand the original interest from his borrower ( debtor ) and thus to enrich himself without having to do anything himself.

The original interest has a relation to what John Maynard Keynes later called the liquidity premium (liquidity-premium, liquidity-function, liquidity-preference).

Individual evidence

  1. ↑ Dieter Suhr , Hugo Godschalk : Optimal liquidity . Knapp, Frankfurt 1986, ISBN 3-7819-0349-4 ( fu-berlin.de [accessed on March 24, 2020]).
  2. ^ Dieter Suhr: Money without added value . Knapp, Frankfurt 1983, ISBN 3-7819-0302-8 , chap. 6 ( fu-berlin.de [accessed on March 24, 2020]).

See also

literature