BEO2000 Lecture Notes - Lecture 2: Inverse Relation, Demand For Money, Opportunity Cost
31 Jul 2021
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Lecture 2: theories of the demand for money. Sen, g. c. , 2013, keynes" theory of demand for money: beo2000 financial institutions & monetary theory, primary sources, with respect to learning outcomes, you should be able to, b. Review fisher"s quantity theory of money: d. review developments of keynes"s theory and response (e. g. b-t transaction model and, explore keynes"s liquidity preference theory, identify the meaning and function of money; Learning outcomes: review friedman"s modern quantity theory of money, review empirical evidence for support of theories. There is no commonly accepted general definition of money. Economists meaning of money: (i) anything that is generally accepted as a means of payment for goods and services. Thus, it must serve as a medium of exchange. (ii) not the same as wealth and income: primary functions of money. There are three main primary functions of money: medium of exchange, an item that buyers give to sellers when they purchase goods and services.
