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

The capitalists—in supplying present goods for future goods—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. The capitalists are not exploiters but intermediaries, bridging present and future demand with money—because, by definition, money is the best technology for this function.revisit

“In the aggregate, the interaction of the time preferences and hence the supply-demand schedules of individuals on the time market determine the pure rate of interest on the market.”

Next:

• 13-5f The interest rate is determined by the time-preference schedules, rather than vice versa

Related:

• 13-4d6 The economist must take account of all the interrelations in the economy and recognize that money costs are determined by final prices reflecting consumer demands and valuations
• 13-5a The role of capital is to advance men in time toward their objective in producing consumers’ goods
• 13-4d5 Prices are derived from subjective values
• 13-7 Value scales consist of specific units, and associated subjective utilities
• 13-8c Utility alone determines the price and the quantity exchanged