Abstract
This chapter discusses the demand for money as a stock variable among other forms of wealth holding. The intellectual gulf between economists' theory of the values of goods and services and their theories of the value of money is well known and periodically deplored. Recent developments in economic theory have greatly improved the prospects of carrying out Hicks's simplifying suggestions and deriving rigorously the imputed return or marginal utility of money holdings in relation to their size. The new tools are constructing a bridge between the general economic theory and monetary economics. Such a theory would explain both the balance sheet choices of economic units as constrained by their net worth and the determination of yields in markets where asset supplies and demands are balanced. Monetary policy, altering the demand debt component of government debt, can affect the terms on which the community will hold the capital stock.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
