The Demand for Money: Theories, Evidence, and Problems

adjustment aggregate demand analysis approach argued assets assumption behavior brokerage fee cash chapter consumption consumption function cost of holding definition of money demand curve demand deposits demand for money demand function demand-for demand-for-money function discussed economists effect empirical equal Equation equilibrium level exogenous expected inflation factors Figure Friedman given hence holding money hypothesis implications important increase individual agent inflation rate interest rate involved lagged Laidler level of income level of real liquidity trap LM curve long-run macroeconomic matter measured monetary money demanded money function money holding nominal money supply nonhuman wealth opportunity cost period permanent income precautionary balances precautionary demand price level problem proportion quantity of money rate of interest rate of return rational expectations real income relationship relevant scale variable shift short-run speculative demand studies supply and demand theory tion transactions and precautionary transactions demand volume of transactions wealth effect yield