Section 1
Introduction to Monetary Policy
Book
Version 3
By Boundless
By Boundless
Boundless Economics
Economics
by Boundless
3 concepts
![Thumbnail](../../../../../../figures.boundless-cdn.com/20855/raw/e-1954-thru-2009-effective.jpg)
The Demand for Money
In economics, the demand for money is the desired holding of financial assets in the form of money (cash or bank deposits).
![Thumbnail](../../../../../../figures.boundless-cdn.com/21013/raw/supply-and-demand.jpg)
Shifts in the Money Demand Curve
A shift in the money demand curve occurs when there is a change in any non-price determinant of demand, resulting in a new demand curve.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20865/raw/tes-from-1967-to-2003-grid.jpg)
The Equilibrium Interest Rate
In a economy, equilibrium is reached when the supply of money is equal to the demand for money.