“would be the interest rate that would prevail in a barter economy; the second [sc. interest rate] (mine) would be the intertemporal equilibrium rate for terms and risk (yield curve) that would prevail in a monetary economy under the assumption that there was no maturity mismatch and risks.”First, Rallo’s “maturity mismatch” theory seems to require 100% reserve banking and only fixed term loans. If not, then how can a fractional reserve banking system possibly be compatible with the idea of no “maturity mismatch” between monetary savers and lenders?
“vendría a ser con la tasa de interés que prevalecería en una economía basada en el trueque, la segunda (la mía) sería la tasa de equilibrio intertemporal, por nivel de plazo y riesgo (curva de rendimientos) que prevalecería en una economía monetaria bajo el supuesto de que no hubiese descalce de plazos y riesgos.”
Secondly, what does this monetary equilibrium interest rate do?
It must clear the market for loanable funds, and it must also clear the markets for capital goods, in order to create intertemporal equilibrium. But such a thing is impossible in a monetary economy in disequilibrium because, as Sraffa showed, there could be as many natural rates as types of capital goods, and a monetary interest rate cannot be equal to all.
But if this monetary equilibrium interest rate does not clear the markets for capital goods, then it cannot provide coordination of real saving and investment.
At most, it would clear the market for loanable funds, but this cannot create intertemporal coordination because the whole time preference theory of loanable funds is false.