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Dan and Michael, 
 
Turgot, drawing on physiocratic inspiration, argued that the rate of interest was at least
partly determined by the net productivity of the land, if not of forests in particular.
According to a long footnote on p. 332 of Schumpeter's History of Economic Analysis, Bohm-
Bawerk criticized Turgot for his so-called "fructification theory," devised to counter the
"sterility of money" argument of Aristotle.  Cassel also contributed to this discussion.
Schumpeter sees hints of this argument in Hutcheson and Petty.  But Turgot is seen as
proposing the relation as an equilibrium condition rather than as a causal relationship
from land to the rate of interest, the exchange ratio between land and "richesses
mobilieres."
 
Barkley Rosser 
 
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