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I understand the supply side pretty well, but it is the demand side I struggle with. If the supply of money increases, you will get a dollar worth less and thus higher prices, as well as all of the negative effects of inflation (the business cycle, etc). But why would a decrease in the demand for money...
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Or even to ordinally measure if demand for money is increasing or decreasing? Prices are effected both by the supply and demand of money. The supply of money can be measured. But how is one to gauge the demand of money? For if the demand for money rises as the supply of money rises, prices would not...
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ABCT holds that business cycles are caused by an increase in the supply of money. I understand the supply part of ABCT pretty well, but I do not understand how demand factors in. For example, wouldn't the decrease in the demand for money also cause business cycles? Why such a decrease not result...