CHAPTER IV

THE CAPITALIZATION THEORY AND THE VALUE OF MONEY

Money as "capital good," and "money-rates" as rentals 72-73

Capitalization theory; formula; capital value passive resultant of annual income and rate of discount 73-74

But in case of money, rental and rate of discount not independent variables 74-76

And in case of money, capital value not passive shadow, but active cause of income 76

Capitalization theory assumes money, and fixed value of money 76-77

Assumed fixed value of money absolute, and not relative 77-78

Capitalization theory, in current formulation, inapplicable to value of money 78-79