Tag: Money Demand

The theory of asset demand also stresses the function of money as the store of value. This theory elaborates on why individuals demand one asset or typical portfolio of assets over the other alternatives. What is an Asset? Asset is a valuable resource that an individual or

The Keynesian theory of money demand is also called liquidity preference theory. This article tries to explain about Keynesian theory of money demand and elaborate on how it differs from the classical theory of money demand. Assumption of Two Assets World Keynes assumed the two assets world,

Quantity theory of money is a classical theory of money demand, why? You will understand the concept of money demand, reasons to hold money, classical theory of money demand, implications and criticism of theory after reading this article. But before, we advise you to read