| 单词 | demand for money |
| 释义 | demand for money The amount of money people wish to hold, or the function determining this. Some economists have referred to the demand for transactions, speculative, and precautionary balances, but money held for one purpose can always be used for another, so it seems more sensible to think in terms of different motives affecting the amount of money holdings people want. The transactions motive means that, because money is used in most transactions, individual money holdings are an increasing function of incomes, and business holdings are an increasing function of turnover. At any given level of real activity, money holdings at any given interest rate and expected rate of inflation are proportional to the price level. Because money is one way of holding assets, the amount demanded is also an increasing function of total net assets. The demand for money, or liquidity preference, is widely held to be a decreasing function of both interest rates and the expected rate of inflation. The size of this effect is not agreed, and because interest rates and inflation are correlated, it is difficult to separate their effects on the demand for money. The speculative motive refers to Keynesian models of money demand, in which liquidity preference is an increasing function of any expected rise in interest rates: such an increase would lower security prices, which makes money seem relatively attractive as an asset. The precautionary motive for holding money exists because liquidity is an insurance against uncertain prospects, so that the demand for money is a decreasing function of confidence in the stability of people's incomes, and is higher when the future seems more uncertain. See also: interest-elasticity of the demand for money |
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