Comparison of Usury/Interest and Asymmetric Information by Jacob Diny

Comparison of Usury/Interest and Asymmetric Information by Jacob Diny

Economics

The paper compares Adam Smith’s philosophy of Usury to the modern theory of usury and critiques the theory Adam Smith presents. After the comparison, there is discussion about how Adam Smith wanted to regulate usury or interest rates. I then present how asymmetric information played a role the 2008 financial crisis and give a brief overview on some of the causes of the “Great Recession” based on published literature. I then take Adam Smith’s theory on usury and describe how Adam Smith would have reacted to the 2008 crisis and the causes leading up to it. Adam Smith would have argued against the deregulation because Smith believed in only lending to the “sober people”, people who have proven themselves in business already.

Diny, Jacob

Senior Showcase Oral presentation

Ripon College

April 23, 2019

The author reserves all rights.

pdf

Major: Economic and Business Management

Greenleaf, Wisconsin

ECO 380 History of Economic Thought