The law of demand states that, all else being equal, the quantity demanded of an item decreases when the price increases and vice versa. Safe the stress and Get your project proposal approved, Hire a writer to assist you with quality and well-organised research proposal. now am done with my project. This concern has been triggered further by the abandonment of monetary targeting strategy by many developed countries such as Australia, Brazil, Canada, New Zealand, Norway and Turkey, as they switched to inflation targeting strategy arguing that the money demand function is tending to become unstable (Bhatta, 2013, p.2). Due it was my daughter that referred me to this site, thanks am done with my thesis.
Am now a graduate. Research your newly approved Serminal topic, let us assist in your research as we get you covered with complete quality and well organised Serminal work. **demand … Nice concept, I really love your vision, your website has been of good help to my research project. If the relationship between the demand for money and its determinants shift around unpredictably, the central bank loses the ability to derive results from the implementation of its policies. thanks for maintaining your trust and reputation. A sound monetary policy formulation presupposes theoretically coherent and empirically robust model of money demand.
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In theory, money demand is an incremental function of real income as usual budget condition dictates, and it is the most
projectandmaterials get you covered, Relax and Get the stress off your shoulders. Relax and Get the stress off your shoulders. This is why the demand curve slopes downwards. We Get you covered. Therefore, the stability issue of the money demand function needs an intense focus for justifying the working of the monetary targeting strategy (Bhatta, 2013, p.2).The main objective was to examine the determinants of demand for money and to determine its stability in Nigeria. Theoretically, the choice of target is normally between the stock of monetary aggregates and interest rates. All rights reserved. Relax and Get the stress off your shoulders. The way in which these factors affect money demand is usually explained in terms of the three motives for demanding money: the transactions, the precautionary, and the speculative motives. Test Prep The vast majority of goods and services obey what economists call the law of demand. However, because China has been in market-oriented reform since the late 1970s, China’s money demand has a special problem at this stage.
Research your newly approved journal, We assist and we get you covered with complete quality and well-organised research work. It helps decide whether to use the monetary targeting strategy or inflation targeting strategy in achieving the desired macroeconomic objectives.
Since the demand for money would fall at high rates of interest, and increase at low rates of interest, there is an inverse relation between the asset (speculative) demand for money and the rate of interest.
A stable money demand function always require appropriate instruments and intermediate targets of monetary policy. Therefore, it is important to have knowledge of the determinants of money demand in order to ensure a stable relationship exists between these determinants and the money stock.The stability of the money demand function is the focal point for any central bank’s policy. (p.2).Laumas and Mehru (as cited in Ogunsakin and Awe, 2014, p.2) stipulated that the stability of money demand is crucial for the understanding of the monetary policy transmission mechanism. Monetary targeting is an attempt by central banks to describe or determine the optimum money stock that will yield the desired macroeconomic objectives. we assist why you Relax and Get the stress off your shoulders. A shift in the demand curve occurs when the curve moves from D to D₁, which can lead to a change in the quantity demanded and the price. This arises because people use money as a store of value.