The Nobel Prize, Life, and Legacy

Abstract

Each in their own way, Irving Fisher, John Maynard Keynes and then Franco Modigliani made profound contributions to the field of personal finance. Fisher described the process by which those with a high individual rate of time preference would borrow at a lower prevailing interest rate and would represent the demand for loanable funds. On the other hand, those willing to save because the interest rate offered in market equilibrium was larger than their rate of time preference provided the supply of funds to lending markets.