13-5b2b Because of money, the rate of return will tend to be uniform throughout the length and breadth of the production structure

“Since money is the general medium of exchange and can be invested in all products, this close competition extends throughout the length and breadth of the production structure. It is the “social rate of time preference.” It is the “price of time” on the market as the resultant of all the individual valuations of that good.”

“Not only must the interest rate be uniform for each good; it must be uniform for every stage of every good. In the real world of uncertainty, the tendency of entrepreneurial actions is always in the direction of establishing a uniform rate of interest throughout all time markets in the economy.”

Next:

• 13-5b2c There is no time inconsistency in the evenly rotating economy (ERE)

Related:

• 3-1a4b7 The monetary account will increasingly explain the world—especially as it pertains to the human actions—though never exhaustively

ERE