The New Understanding of Keynes and Fishers Theory Free Essay, Term Paper and Book Report
Keynes three psychological factors affecting the money demand have been accepted by all for many years. Under the current economic situation, I have some new understanding about several points of his theory and about Fishers quantity theory of money. First, Id like to state some assumptions about my analysis. While we talk about money demand, we always emphasize the desire to obtain the money and the ability to get it, that is , we tend to define the nature of money demand, however, the range of money demand has not been mentioned, that range plays a great part in the analysis and understanding of money demand. We all know that the demand and supply of money are closely connected, and the money supply has its definition and range, so I choose money supply as the base of my analysis of demand. However, it doesnt mean that money supply decide the quantity of demand. Different countries and financial systems have varied definition of the range of money supply. When some countries choose M1 (the amount of money in circulation in notes, coin, current accounts, and deposit accounts trans......
Word Count: 732
Page Count: 2.9 (250 words a page / double spaced)
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