“When credit is expanding, the rising price level and high profits bring about a high rate of interest. When the expansion has reached, the limit permitted by the stock of gold, the rate of interest is put still higher in order to bring about a fall in the price level. When the fall in prices takes effect, a low rate of interest becomes appropriate, and when credit contraction has proceeded so far that a redundant supply of gold has accumulated, the rate of interest is depressed still lower in order to bring about a renewed rise in the price level. Thus a high rate of interest corresponds first with rising, then with falling, prices, and so synchronizes with high prices. A low rate of interest corresponds first with falling, and then with rising, prices, and so synchronizes with low prices.”

— Ralph George Hawtrey

Ralph George Hawtrey, quoted in Irving Fisher, The Theory of Interest (1930), Chapter 19. The Relation of Interest to Money and Prices

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Ralph George Hawtrey 11

British economist 1879–1975

William J. Bernstein (1948) economist

Source: The Four Pillars of Investing (2002), Chapter 1, No Guts, No Glory, p. 13.

“House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals, including robust growth in jobs and incomes, low mortgage rates, steady rates of household formation, and factors that limit the expansion of housing supply in some areas.”

Ben Bernanke (1953) American economist

October 20, 2005 http://www.house.gov/jec/hearings/testimony/109/10-20-05bernanke.pdf, in testimony to Congress's Joint Economic Committee.

“The bond price, and, as an arithmetical and rigid consequence, the interest rate is an inherently restless variable.”

G. L. S. Shackle (1903–1992) British economist

Source: Epistemics and Economics. (1972), p. 201

“The time has come to speak out. Britain is now locked in a vicious spiralling interest rates…The net result of completing the vicious circle is that prices have increased, the rate of inflation has gone up, the money supply has increased, unemployment has gone up, the rate of bankruptcies has increased, the industrial base has been further eroded, the Government's borrowing requirement has increased and as a result there is more pressure to raise interest rates yet again, to be followed inevitably by the same vicious circle. It is this that must be broken.”

Edward Heath (1916–2005) Prime Minister of the United Kingdom (1970–1974)

Speech to the Federation of Conservative Students in Manchester (6 October 1981), quoted in The Times (7 October 1981), p. 6.
Post-Prime Ministerial

“When high self-needs are combined with the deprivation of physical affection, the result is self-interest and high rates of narcissism.”

James W. Prescott (1930) American psychologist

"Body Pleasure and the Origins of Violence" (1975)
Context: When high self-needs are combined with the deprivation of physical affection, the result is self-interest and high rates of narcissism. Likewise, exhibitionistic dancing and pornography may be interpreted as a substitute for normal sexual expression.

“The differential rate system of piece-work consists briefly in offering two different rates for the same job: a high price per piece, in case the work is finished in the shortest time possible and in perfect condition, and a low price, if it takes a longer time to do the job, or if there are any imperfections in the work. (The high rate should be such that the workman can earn more per day than is usually paid in similar establishments.) This is directly the opposite of the ordinary plan of piece-work, in which the wages of the workmen are reduced when they increase their productivity.”

Frederick Winslow Taylor (1856–1915) American mechanical engineer and tennis player

Source: "A Piece-rate System," 1896, p. 90; Cited in: Morgen Witzel, Fifty key figures in management. Routledge, 2004. p. 250.

“We assume…that the banking system must be prepared to expand (or contract) the total supply of money to the extent necessary to prevent any scarcity (or plenty) of funds in the capital market which may be induced by any other disturbing factor, from causing a rise (or fall) in interest rates”

James Meade (1907–1995) British economist

James Meade (1951), The theory of international economic policy, Vol. 1, p. 48; as cited in: Jacques Jacobus Polak (2001) The Two Monetary Approaches to the Balance of Payments, p. 13

“Rising interest rates have been advertised for so long and in so many places that anyone who has not appropriately hedged this position by now obviously is desirous of losing money.”

Alan Greenspan (1926) 13th Chairman of the Federal Reserve in the United States

Novermber 2004 in a speech in Frankfurt.
2000s

“I'm glad whenever they cut interest rates, I wish interest rates were zero.”

John McCain (1936–2018) politician from the United States

Republican presidential debate http://www.msnbc.msn.com/id/21221689/ (9 October 2007)
2000s, 2007

“Hayek’s essential gist in capital theory was that capital is heterogeneous, that it cannot be put to many uses simultaneously or at different times. If these empirical assumptions as to capital’s heterogeneity are false, then his theoretical system of economic activity falls. Hayek never established that changes in interest rates primarily and predominantly influence capital production of goods of higher order and their prices.”

Alan O. Ebenstein (1959) American political scientist, educator and author

Hayek's Journey: The Mind of Friedrich Hayek (2003)

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