ABSTRACT
Atheorycanbedevelopedwhichexplainstherateofinterestonbondsby analysingthefactorsthatdeterminethepricesofassets.Thistypeof theoryisbasednotonflow-butonstockmagnitudesandthusappliesto apointintime.I t canbedevelopedasamacroeconomicorasamicroeconomictheory.Inthemacroeconomicversionweconfrontthetotal stockofeachofthevarioustypesofassetswiththeaggregatedemand forthatstock,takingintoaccounttheinterdependenceofallmarkets.In amicroeconomicapproach,ontheotherhand,wemustsolvetheproblem ofthechoiceofaportfolioofassetsbyindividualsandfirms,asafirst steptowardstheconstructionofatheoryofinterest.However,herewe shallnotdealwiththeproblemofportfoliochoice;thissubjectwillbe takenup,insofarasitisnecessaryfortheconstructionofthepositive theory,inthefifthpartofthisbook.
