⚫A person who does not need an asset can sell or rent that asset.
Considering that this man acted rationally, it should be expected that if
the sale price of the property and the current value of the rents that that
property will receive during its expected life are the same, it will be
indifferent between the decisions to sell or rent.
⚫If the current value of the rental income exceeds the sale price, the
owner of that asset will rent it. The rental of money, in other words,
lending or borrowing money is evaluated within the same logical
framework as renting goods.
⚫If we can borrow 100 billion TL and buy 10 assets, and we can buy 10
assets with TL 100 billion at the end of the year, there is no loss.
However, a fixed rent of the purchasing power of the money must be
paid (real interest). On the other hand, if 9 assets can be bought with
TL 10 billion after a year, the annual devaluation (inflation effect) will be
10%. The rent to be claimed is real interest plus 10% depreciation rate
…