EconPapers    
Economics at your fingertips  
 

The demand for money

.

Chapter 4 in The International Monetary System and the Theory of Monetary Systems, 2016, pp 26-44 from Edward Elgar Publishing

Abstract: In order to evaluate the working of a monetary system – which is one of the aims of this book – it is necessary to have evaluation criteria. It can be said that a ‘good’ monetary system is a system which is providing ‘good’ money; which, in turn requires a definition of ‘good’ money (or ‘sound money’). A currency can be considered as sound if it provides to money-holders the services they desire from money. Thus, the chapter explains the roles of money as an intermediary in exchange, as a means to do exchange over time, and – less importantly – as a standard of value. In general terms money can be defined as a ‘generalized purchasing power’. Because it provides these services, money is a useful economic good and it is desired. Therefore the chapter explains the main determinants of the demand for money, in particular the interest rate – which is the price of time – and inflation expectations (or expectations about possible changes in the purchasing power of money).

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.elgaronline.com/view/9781786430298.00009.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:17285_4

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().

 
Page updated 2025-03-31
Handle: RePEc:elg:eechap:17285_4