The Classical and Keynesian Approaches to Interest Rate Determination: A Theoretical Overview Authors Rizwan Qasim Department of Economics, Aligarh Muslim University, Aligarh, Uttar Pradesh India Dastgir Alam Department of Economics, Aligarh Muslim University, Aligarh, Uttar Pradesh India Irshad Ahmad Department of Economics, Aligarh Muslim University, Aligarh, Uttar Pradesh India https://orcid.org/0009-0007-3797-2128 DOI: https://doi.org/10.47505/IJRSS.2025.8.1 Keywords: Classical theory, Interest rate, Keynesian theory Abstract Interest rates play a pivotal role in shaping the economic environment. They determine the cost of borrowing and the return on savings and have significant effects on investment, consumption, and overall economic growth. The Classical and Keynesian schools of thought provide distinct approaches to understanding how interest rates are determined. The Classical theory emphasizes the interplay between savings and investment, while the Keynesian theory focuses on the influence of demand for money and supply of money. As a result, the purpose of this research is to compare both theories and analyze them from a theoretical perspective. Downloads Pdf How to Cite QASIM, R., Alam, D., & Ahmad, I. . (2025). The Classical and Keynesian Approaches to Interest Rate Determination: A Theoretical Overview. International Journal of Research in Social Science and Humanities (IJRSS) ISSN:2582-6220, DOI: 10.47505/IJRSS, 6(8), 1–5. https://doi.org/10.47505/IJRSS.2025.8.1 More Citation Formats ACM ACS APA ABNT Chicago Harvard IEEE MLA Turabian Vancouver Download Citation Endnote/Zotero/Mendeley (RIS) BibTeX Issue Vol. 6 No. 8: IJRSS August 2025 Section Articles License Copyright (c) 2025 Rizwan Qasim, Dastgir Alam, Irshad Ahmad This work is licensed under a Creative Commons Attribution 4.0 International License.