“The aggregate time-market schedules (determined by time preferences) determine the aggregate social proportions between (gross) savings and consumption. The time preferences of the individuals on the market determine simultaneously and by themselves both the market equilibrium interest rate and the proportions between consumption and savings (individual and aggregate).” (p. 400)
Related:
- 13-5a1 Civilization advances by virtue of additional capital
- 13-5e The capitalists are constrained by the aggregated time-preference schedules just as sellers of any other present goods are constrained by the aggregated demand schedules of the consumers
- 13-5f The interest rate is determined by the time-preference schedules, rather than vice versa
- 13-10 The law of the diminishing marginal utility of money applies only to the valuations of each individual person