THE FUNCTIONING OF MONEY AND THE MONEY ECONOMIC SYSTEM

Author(s): LILIANA CIMBROLA
Journal: Analysis and Metaphysics
ISSN: 1584-0778
Year: 2005
Volume: 4
Issue: 2
Full text: http://www.denbridgepress.com/am_abstract.php?a=48
Publisher: Denbridge Press - New York
Abstract: Real money is a function of nominal money, and the effect of changing prices on the nominal budget of the individual financier/consumer is knowable only by the individual. Salvary argues that nominal money prices, specific price changes, and rates of return on nominal money guide the output decisions for the physical quantities. The preponderance of empirical evidence supports the view that money is an endogenous variable.