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  • Supply vs Demand applied to money

    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...
    Posted to Economics Questions (Forum) by tcostel on Tue, May 29 2012
  • Is it possible to measure the demand for money, even approximately?

    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...
    Posted to Economics Questions (Forum) by tcostel on Sun, May 27 2012
  • Demand for money and business cycles

    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...
    Posted to Economics Questions (Forum) by tcostel on Fri, Aug 19 2011
  • two questions from an econimics newbie

    I am an economic layman, but I want to know more. I recently started reading Murray Rothbard's "What Has Government Done to Our Money?". I am about 50 pages in and there are two things that are confusing me. 1) In arguing that money must arise out of a free market process as opposed to...
    Posted to Economics Questions (Forum) by MDay1985 on Sun, Feb 13 2011
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