ECON 251: Financial Theory
Lecture 06 - Irving Fisher's Impatience Theory of Interest. Building on the general equilibrium setup solved in the last week, this lecture looks in depth at the relationships between productivity, patience, prices, allocations, and nominal and real interest rates. The solutions are given to three of Fisher's famous examples: What happens to interest rates when people become more or less patient? What happens when they expect to receive windfall riches sometime in the future? And, what happens when wealth in an economy is redistributed from the poor to the rich? (from oyc.yale.edu)
| Lecture 06 - Irving Fisher's Impatience Theory of Interest |
| Time | Lecture Chapters |
| [00:00:00] | 1. From Financial to General Equilibrium |
| [00:06:44] | 2. Applying the Principle of No Arbitrage |
| [00:23:50] | 3. The Fundamental Theorem of Asset Pricing |
| [00:39:25] | 4. Effects of Technology in Fisher Economy |
| [00:51:31] | 5. The Impatience Theory of Interest |
| [01:06:48] | 6. Conclusion |
| References |
| Lecture 6 - Irving Fisher's Impatience Theory of Interest Instructor: Professor John Geanakoplos. Transcript [html]. Audio [mp3]. Download Video [mov]. |
Go to the Course Home or watch other lectures: