The demand for money is regulated entirely by its value, and its value by its quantity.
1 reply on “David Ricardo”
I must argue with Ricardo.
When, as in Ricardo’s day, a commodity is used as money, the quantity of money may be regulated by its value, in-so-far as when the value of the commodity as money is high relative to its value in other use, the commodity will be drawn from other use into use as money, and, when the value as money is low relative to the value in other use, the commodity will be drawn from use as money to other use.
Moreover, whether the money is a commodity or merely by fiat, the average rate of circulation affects the value of money, and this rate is affected by the evolving technology of moving money and by varying uncertainties over the need for money.
1 reply on “David Ricardo”
I must argue with Ricardo.
When, as in Ricardo’s day, a commodity is used as money, the quantity of money may be regulated by its value, in-so-far as when the value of the commodity as money is high relative to its value in other use, the commodity will be drawn from other use into use as money, and, when the value as money is low relative to the value in other use, the commodity will be drawn from use as money to other use.
Moreover, whether the money is a commodity or merely by fiat, the average rate of circulation affects the value of money, and this rate is affected by the evolving technology of moving money and by varying uncertainties over the need for money.