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Interest rates were very high in early societies. For example in 13th century England they were...

Interest rates were very high in early societies. For example in 13th century England they were 10-12%. Explain why this seems to imply that people in early societies were just more impatient than those by 1800.

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In early societies the development rate was rapidly increasing and demand for money was more than expected . The new competition was arriving in the market due to which the demands were increasing and with the increasing demands the rate of interest was getting high.

This is the main reason for rising in interest rates in the early society . As the resources of money were less and demands were increasing rapidly whereas during the 1800 the market was getting settled and the demand was slowly getting short as compared to the 13th century. Whereas development stage was taking a slow pace as well which resulted in less interest rates .

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