The fact (based on experience) that consumers generally attach greater value to present goods than to future goods. In other words, to-day’s goods have a higher degree of desire for a person. Therefore, if someone foregoes consumption today, i.e. saves and transfers money as a loan to someone else, he wants compensation for this time preference, a premium: interest. – See financial psychology, saving, saving rate, interest, interest theories.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/
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