But at the same time, there is an increase in demand for money during the holiday season, as people want to buy more products. This makes it seem like the demand for money actually increases velocity. Thanks for your help.
Wow awesome . I'm currently reading Mises' theory of money and credit, and I'm a little confused. How does the demand for money affect the quantity theory? Mises states that the demand for money will increase during uncertain times. As the current condition is not suitable for transactions, relatively speaking (compared to a future date). So it seems to imply a fall in velocity.
But at the same time, there is an increase in demand for money during the holiday season, as people want to buy more products. This makes it seem like the demand for money actually increases velocity. Thanks for your help.
Questfortruth86 2 years ago
Wow awesome . I'm currently reading Mises' theory of money and credit, and I'm a little confused. How does the demand for money affect the quantity theory? Mises states that the demand for money will increase during uncertain times. As the current condition is not suitable for transactions, relatively speaking (compared to a future date). So it seems to imply a fall in velocity.
Questfortruth86 2 years ago