Interest-bearing debt in the john calvin school of thought

Abstract

John Calvin, who greatly contributed to the current norm of capitalism with his revolutionary opinions following the 16th century, is seen as the being at the frontier of reformists critiquing the ban on interest. Bringing a new perspective to the market morality of Christianity, he argues that interest-bearing debts are religiously and morally acceptable activities under certain conditions. Calvin attempted to include the realities of the emerging economic climate and the historical roots of the issue to his approach. Additionally, he exchanged views in his correspondence with the leading thinkers of the time on the possibility of bending the strict prohibition of interest. The changes in professional etiquette legitimized secular lines of work, while Calvin’s interest/extreme interest distinction brought a new perspective to the medieval opinion on interest. This work aims to critically investigate the basis of the interest/extreme interest distinction debt its arguments from Calvinism.