The Motivation for Controlling Interest and Its Instruments

Cem Eyerci

Chapter Chapter 4 in The Causes and Consequences of Interest Theory, 2021, pp 55-66 from Springer

Abstract: Abstract This chapter presents the reasons for prohibiting interest or limiting its rate that arise from various motivations such as belief, ethics, or protection of the needy and lists many problems that are asserted to be the consequences of the practicing interest. It briefly introduces some of the more economics-related reasons that depend on the claimed features of interest. The mentioned features are being an income received without working, benefiting from the poor people, enhancing the inequality in the distribution of wealth, causing economic instability, discounting the future, restraining investment, and causing a form of slavery. The chapter evaluates the instruments that were used in the past and are still being used today for the restriction of interest in four groups that are formed regarding their sources of enforcement, namely legal arrangements, religious beliefs, social norms of ethics, and financial means.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-78702-8_4

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DOI: 10.1007/978-3-030-78702-8_4

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