ABSTRACT
Any attempt to expound Walras' theory of interest meets with the difficulty that he built it into his system of general equilibrium. Hence a complete exposition would require the presentation of the entire Walrasian system. Since Walras' equations have been frequently reproduced, both in simplified versions and i n their full form, and as it is not our task to enter into a discussion of the entire system, it seems best to give merely an outline of Walras' general analysis, stressing those aspects which are important for his interest theory. We shall then isolate those parts which have a direct bearing upon the theory of interest, i.e., the equations which determine savings, the rate of interest, and the prices and quantities of capital goods.
