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Finance I
Identification problem
Idiosyncratic risk
ldle money - see Inactive money
If and only if (iff)
Ignorantia juris neminem excusat
Immediate annuity
Immiserizing growth
Immobile factors
Impact effect
Imperfect competition
Imperfect market
Imperial preference - see Common Agricultural Policy
Implied terms
Implied volatility
Import specie point
Import substitution
Imported inflation
Impossibility theorem
Impressed stamps
Impulse buying
Impure public good
Imputation system - see Corporation tax
Imputed charge for consumption of non-trading capital
Imputed income
Imputed social contributions
In pari delicto
'In the bank'
In-kind redistribution
Inactive money
Incentive contract
Inchmaree clause
Inchoate instrument
Incidence of taxation
Income apporach to GDP - see Income method
Income bonds
Income determination, theory of
Income distribution
Income effect
Income elasticity of demand
Income expansion path
Income from employment
Income from self-employment
Income inequality
Income maintenance programme
Income method
Incomes policy
Income redistribution
Income support
Income velocity of circulation
Incomplete contract
Incomplete information
Incomplete markets
Independent risks
Independet variable
Index-linked policies
Individual savings account
Index-linked savings certificates
Index number
lndex number problem
Index of Industrial Production
Index of wages and salaries, Finland
Indexation (funds)
Indexed - see Indexation
Indicative planning - see State planning
Indifference analysis
Indifference curve
lndifference map - see Indifference curve
Indirect least squares
Indirect tax
Individual Retirement Account (IRA)
Individual Savings Account (ISA)
Inducement to break a contract
Industrial and commercial finance company
Industrial bank
Industrial Bankers' Association
Industrial life assurance
Industry Acts (UK)
Industry demand for labour
Industry supply curve - see Supply curve
Inelastic demand
Inelastic supply
Inferior good
Inflation-adjusted budget deficit
Inflationary gap
Inflationary spiral
Inflation rate
Inflation tax
Informal economy - see Black economy
Information assymetry - see Asymetric information
Information criterion
Inheritance tax (UK)
Initial conditions
Initial public offering (IPO)
Injections to the circular flow of income
Inland bill
Inland bill of exchange - see Inland bill
Inscribed stock
Inside money
Insider dealings
Insider trading - see Insider dealings
Inspector of Taxes
Instalment credit (U.S.)
Instalments, delivery and payment
Institute cargo clauses
Institutional economics
Institutional investors
Institutional shareholder
Instrumental variable
Insurable interest
Insurance company
Insurance broker
Insurance Brokers Registration Council
Insurance premium
Intensive margin
Inter-American Development Bank (I.D.B.)
Inter-bank market
Inter-bank market bid rate
Inter-dealer brokers
Inter-industry trade
Interdependent utility
Interest, abstinence theory of
Interest, classical theory of
Interest cover
Interest equalization tax
Interest, natural rate of
Interest on calls
Interest on debts
Interest payments
lnterest, productivity theories of
Interest-rate futures
Interest-rate swaps
Interest, time preference theory of
Intergenerational equity
Intergenerational mobility
Intergovernmental Panel on Climate Change (IPCC)
Intermediate products
Internal balance
Internal labour market
Internalizing externalities
Internal market
Internal Revenue Service (IRS)
International Bank for Reconstruction and Development
International cartel
International Clearing Union - see Keynes plan
International Commodities Clearing House
International commodity agreements
International company - see Multinational corporations
International Cooperation Administration
International corporation - see Multinational corporations
International debt
International debt crisis - see Debt crisis
International Development Association (I.D.A.)
International economics
International Energy Agency (I.E.A.)
International Finance Corporation (I.F.C.)
International investment
International Labour Organization (I.L.O.)
International liquidity
International Monetary Fund
International monetary system
International payments
International Settlements, Bank for
International trade
International Trade Organization (I.T.O.)
Interquartile range
Intertemporal budget constraint
Intertemporal substitution
Intervention in foreign exchange markets
Intervention price - see Common Agricultural Policy
Intra-European Payments Agreement
Intra-industry trade
Intra-marginal intervention
Inverse correlation
Inverse elasticity rule
lnvestment bank (U.S.)
Investment club
Investment company
lnvestment, direct - see Overseas investment
Investment incentives
Investment income
Investment income surcharge
Investment in knowledge
Investment Management Regulatory Organization (IMRO)
Investment pools
Investment portfolio
Investment trusts
Investor's yield - see Internal rate of return
Invisible balance - see Balance of payments
'Invisible hand'
Invisible trade
Involuntary saving - see Forced saving
Involuntary unemployment
Inward investment
Irredeemable security
Irrevocable and confirmed credit
Irrevocable documentary acceptance credit
IS curve
Islamic banking
IS-LM model
ISA - see Individual saving account
Isocost curve
Isoprofit curve
Iso-product curve - see Isoquant
Issuing broker
Issuing house
Issuing Houses Association

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Interest, time preference theory of


Interest, time preference theory of

A psychological theory of the existence of rates of interest. An individual prefers consumption now to consumption in the future for two reasons. First, he is aware of the possibility that he may be dead before he can derive the benefits from postponing consumption. Second, and less rationally, there exists a tendency for people to undervalue future benefits - a 'deficiency of the telescopic faculty'.

Reference: The Penguin Dictionary of Economics, 3rd edt.