Home / Library / Present Money Is Worth More Than Future Money

Notable Quote

"A sum of money today is worth more than the same sum to be received in the future. This is not only the common estimation of men, but is grounded in reason: present goods are available for present needs; future goods must be awaited, and in the meantime their possession is uncertain."

— Azpilcueta, Martín de event 1556

From Comentario Resolutorio de Cambios (Commentary on Exchange)

Context: On time preference as the foundation of interest and exchange rates. Comentario Resolutorio de Cambios (1556). Azpilcueta's insight that present money commands a premium over future money is a precursor to the Austrian theory of time preference and a natural law justification for interest.

Topics

school School of Salamanca currency_exchange Monetary Theory monetization_on Sound Money analytics Economics history Early Economics balance Natural Law verified Ethics diamond Value