The Time Value of Money

Abstract

What we take away from this scintillating dialogue is that money has a value that evolves over time. And what sums up this evolution is the interest rate, which is generally set through a meeting of capital seekers and capital providers.

Human: God, you are so powerful! What does time mean to you?

God: Time is nothing. To me, a thousand years is like a minute. Human: (respectful silence) And God, what does money mean to you?

God: Money is nothing. To me, a billion dollars is like one dollar. Human: (dreamy silence) God, could you give me… a dollar?

God: Sure, hang on a minute.

Anonymous

Consider reading this chapter while listening to ‘As Time Goes By’ as sung by Dooley Wilson in Casablanca (Michael Curtiz, 1941) or ‘Avec le temps’ by Léo Ferré.