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Mike's Economics Blog

By Mike Moffatt, About.com Guide to Economics since 2002

What is the Demand For Money?

Wednesday August 20, 2003
In articles such as "Why Don't Prices Decline During A Recession?" and "Why Does Money Have Value?" I discuss the four factors which determine inflation. One of the factors, "The Demand For Money" seems not to make such sense. We all want more money, so isn't the demand for money always constant (and infinite)?

In "What is the Demand For Money?" I show that the demand for money does change over time and I show what causes it to change.

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