Interest as reward or penalty?

[Harry Veeder <eo200@xxxxxx>]

Keynes says of the classical theory of interest:

"The mistake originates from regarding interest as the reward for waiting as
such, instead of as the reward for not-hoarding; just as the rates of
returns on loans or investments involving different degrees of risk, are
quite properly regarded as the reward, not of waiting as such, but of
running the risk." - p. 182 _The General Theory_

Another possibility is that the mistake originates from regarding interest
as the reward for waiting instead of as a penalty for not-waiting.
Notice that while the classical and Keynesian theory differ as to what
interest is rewarding, both theories present interest as some sort of
reward.

Harry Veeder