abstinence theory of interest

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The abstinence theory of interest asserts that the money used for lending purposes is the money not used for consumption – which means, earning interest by abstaining from spending makes the funds possible and available for borrowers.[http://www.economyprofessor.com/economictheories/abstinence-theory-of-interest.php EconomyProfessor.com] {{webarchive |url=https://web.archive.org/web/20100131212613/http://www.economyprofessor.com/economictheories/abstinence-theory-of-interest.php |date=January 31, 2010 }}, Retrieved 2008-05-29

The originator of the theory is Nassau William Senior.