money demand

What is money demand?

money demand definition and meaning on Finance terms:
A key economic relationship that represents the demand for money balances by non-monetary financial institutions (non-MFIs). The demand for money is often expressed as a function of prices and economic activity, which serves as a proxy for the level of transactions in the economy, and certain interest rate variables, which measure the opportunity costs of holding money. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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