Money, "finance" and interest

Monnaie, "finance" et intérêt

Jean-Luc Bailly ()
Additional contact information
Jean-Luc Bailly: LATEC - Laboratoire d'Analyse et de Techniques Economiques [UMR 5601] - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: The purpose of this paper is to show that there is no such thing as a pure money interest in the usual meaning of the phrase, that is, interest bearing on pure bank money. Basically, money cannot bear interest because it is not a net asset. This does not however imply that banks cannot charge interest on liquidities they have created. The concept of "finance" brings to light the process through which a liquid capital owned by the banks is formed in the economy. It then becomes clearer that what is commonly called "money interest" paid to banks is in fact a macroeconomic cost of production and therefore a net asset for the whole of the economy, including the banks.

Keywords: banking; finance; taxation (search for similar items in EconPapers)
Date: 1993
Note: View the original document on HAL open archive server: https://hal.science/hal-01526962v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in [Rapport de recherche] Laboratoire d'analyse et de techniques économiques(LATEC). 1993, 23 p., ref. bib. : 1 p. 1/2

Downloads: (external link)
https://hal.science/hal-01526962v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01526962

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().