Archive | Preference Theory of Interest Rate

Keynes's Liquidity - Preference Theory of Interest Rate! Introduction to Keynes’s Liquidity - Preference Theory of Interest Rate: In his book The General Theory of Employment, Interest and Money, J.M. Keynes propounded his theory of interest called the Liquidity Preference Theory. Keynes considered rate of interest to be a purely monetary phenomenon determined by the demand for money and supply [...]