Journal of Business Ethics

, Volume 96, Issue 2, pp 233–248

Calvin’s Restrictions on Interest: Guidelines for the Credit Crisis

Article

DOI: 10.1007/s10551-010-0462-9

Cite this article as:
Graafland, J.J. J Bus Ethics (2010) 96: 233. doi:10.1007/s10551-010-0462-9

Abstract

Calvin’s view on the legitimacy of interest has had a great impact on the economic development of Western society. Although Calvin took a fundamentally positive attitude to interest, he also proposed several restrictions on the charging of interest. In this article, we investigate the relevance of these restrictions to the current credit crisis. We find that each of them provides a relevant interpretation of what went wrong in the buildup of the credit crisis and gives directions to improve policies of banks and governments as well.

Keywords

banking sector Bible bonus system Calvin credit crisis Golden Rule reciprocity government regulation restriction on charging interest 

Copyright information

© Springer Science+Business Media B.V. 2010

Authors and Affiliations

  1. 1.Department of Economics (Center/European Banking Center)/Department of PhilosophyTilburg UniversityTilburgThe Netherlands

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