What book is recommended that talks about how interest rates would work under a truly free market?
I vaguely remember a passage (I think it was Rothbard) that talked about how the demand for money affects interest rates. That as the demand for holding cash increases, interest rates will rise, as money available to be loaned becomes scarce. But putting this into context, that most people don’t “hold” cash anymore, wouldn’t money always be in banks? As I pay for something with a credit card, or a check, or even cash, most likely that money will be deposited in a bank on the sellers’ end. What are the other factors then on interest rates?