Money Demand and Money Market Equilibrium
1 min read
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Get full access to all Data Science, Machine Learning, and AI courses built for finance professionals.
One-time payment - Lifetime access
Or create a free account to start
A step-by-step guide covering Python, SQL, analytics, and finance applications.
Or create a free account to access more
This video provide an overview of the concept of money demand and money market instruments.
This video develops a graphical model of the money market. Money demand is a positive function of nominal income and a negative function of the interest rate. Money supply is determined by the central bank. In equilibrium, money demand and supply must be equal.