The Demand Curve for Money
Priscilla J.
10/18/2016
I: Introduction
At first glance on the topic for demand for money I thought it was weird that people
actually sat here and estimated why people held their wealth in the form of money. But after
researching this topic I have figured out the importance of estimating the demand curve for
money. The demand curve for money is how much of your wealth you choose to hold as
money. “Previous surveys of the literature on money demand have focused on research from
the 1970s and 1980s (Barnett, Fisher, & Serlitis, 1992; Judd & Scadding, 1982; Laidler,
1993; Thompson, 1993), with the exception of Sriram (2001), who primarily summarized
elasticity estimates obtained in different countries or with different methodologies.” (Arnold,
2011) “The demand for money is a critical component in the formulation of monetary policy,
and a stable demand function for money has long been perceived as a prerequisite for the use
