Tim Johnson — Reciprocity and the difference between usury and interest

History of interest in relation to usury and risk compensation. A bit wonkish, but important in that it relates to the debate over inequality. It's also interesting from the historical perspective on the development of finance.

We can interpret interest in two ways, as a means of "growing" ones wealth, which would be usurious in the Scholastic sense, or as a compensation. If it is a compensation the wealth is not expected to grow, that is, Piketty's whole argument becomes somewhat meaningless.

Magic, Maths, and Money — The Relationship between Science and Finance
Reciprocity and the difference between usury and interest
Tim Johnson | Lecturer in Financial Mathematics at Heriot-Watt University, Edinburgh