The term ‘loanable funds’ was used by the late D.H. Robertson, the chief advocate of the loanable funds theory of the interest rate, in the sense of what Marshall used to call ‘capital disposal’ or ‘command over capital’, (Robertson 1940, p. 2). In a money-using economy where money is the only accepted means of payment, however, loanable funds are simply sums of money offered and demanded during a given period of time for immediate use at a certain price.
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