Liquidity preference theory

J.M. Keynes hence this theory is known as also Keynesian theory of interest propounded liquidity preference theory of interest. According to Keynes’ the rate of interest is determined by the demand for and supply of money or cash. Keynes’ theory based on Liquidity preference is called monetary theory of the rate of interest as against […]

Loanable fund theory of Interest

The Loan able fund theory of interest propounded by Swedish Economist Knut Wicksell. This theory was other Swedish economists – Gunnar Myrdal, Lindahl. And B. Ohlin and the British economist D.H. Robert sons also developed the theory in Britain. Loan able fund theory also called new-classical theory of interest asserts that the rate of interest […]