As money becomes more desired, goods and services (for which money is exchanged) should become cheaper, in terms of money. Right?
I can demand more cheeseburgers and more grape sodas at the same time, but I can only exercise this demand by reducing my demand for dollars, or whatever else might be accepted as currency in exchange. To speak of an increased demand for money, unless its qualified by a reduced desire for other things, doesn’t balance. People always want more money, as a medium of exchange in order to satisfy their unlimited wants in a world where everything is limited by scarcity.
But unless they’re willing to part with something else, any talk about their increased demand for money is economic nonsense. When the demand for money rises, all else equal, the demand for other goods/services should fall. People should be more willing to part with other things (i.e., lower prices) if there truly is a rising “demand for money.”
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