'Lack of money': a reappraisal of Lessius' contribution to the scholastic analysis of money-lending and interest-taking

Toon Van Houdt

The European Journal of the History of Economic Thought, 1998, vol. 5, issue 1, 1-35

Abstract: The Jesuit theologian Leonard Lessius contributed his own small part to the intellectual renewal of the so-called 'School of Salamanca' by introducing into the scholastic doctrine on lending a new extrinsic title, which he termed 'lack of money' (carentia pecuniae). In this article, I re-examine the genesis of the extrinsic title in light of new evidence that I have discovered. I continue with a thorough analysis of the title itself. I argue that the introduction of carentia pecuniaewas a highly significant contribution to late scholastic economic thought because of its insight that interest represented the time value of money which was to be determined by a common estimate on the loan market or Bourse. Finally, I try to explain why Lessius did not consider it completely inconceivable or at odds that it was morally acceptable for merchants to fix a market or Bourse price for money lent, while at the same time remaining faithful to the traditional ecclesiastical prohibition of usury.

Keywords: Lessius; late scholastic thought; lending at interest; usury; extrinsic titles (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (3)

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DOI: 10.1080/10427719800000001

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