Re: pop quiz time

[Eugene Coyle <eugenecoyle@xxxxxxx>]

I think I said that one day after drinking eight cups of tea.

Gene

Ian Murray wrote:

> [who said it?]
>
> "...confusion forces practical economists to explain the determination of
> interest by opportunity cost reasoning - a particular rate of interest
> being set by the 'pure' rate yielded by the riskless government bonds,
> with inflation, risk, and administrative cost premia added. But there is
> no watertight justification for the perpetual existence of this 'pure'
> rate. Interest exists because it is there; it is still held up by its own
> theoretical bootstraps. The failure of mainstream economics to explain
> adequately the existence of interest betrays the fact that it is merely a
> theoretical concept with no true basis in reality. It is a figment of our
> collective imaginations."