Abstract
Boehm-Bawerk (1891) asserts that there are three origins for interest: time preference, diminishing marginal utility and round-about production (or productivity of capital goods). The first and second origins are named as subjective origins. In this paper these two origins are introduced and then criticized with a new, innovative, theoretical approach. The results of the study reveal that these two origins for positive market interest rate do not have any rational bases. These origins come from irrationality behavior. Also a mathematical model that shows positive time preference and that has strong direct effect on inflation is introduced.
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