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2011 | OriginalPaper | Buchkapitel
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In one fell swoop, Irving Fisher unified what had been two distinct areas of research. Ever since Adam Smith, there had been significant discussion on the meaning of the interest rate as a reward to capital. Eugen von Böhm-Bawerk had realized that there was a discrepancy between the amount one was willing to invest and the flow of profits in the future from that investment. For instance, a $10,000 investment that could generate annual returns of $1,000 for ten years and have no remaining residual (or scrap) value thereafter would not be considered profitable.