MONEY DEMAND AND MONETARY POLICY

Author(s): CONSTANTIN LAPADAT
Journal: Analysis and Metaphysics
ISSN: 1584-0778
Year: 2005
Volume: 4
Issue: 2
Full text: http://www.denbridgepress.com/am_abstract.php?a=49
Publisher: Denbridge Press - New York
Abstract: The expected rate of return on capital adjusts to the interest rate in equilibrium through variations in the scale of investment. Uncertainty about the future resale price means that traders lack a terminal value from which to backwardize. Money has utility because it is a 'wealth-unit ready to be activated'; it also has the property of being the most easily adjusted asset in case an excess quantity accumulates.