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Money Demand and Inflation: The relationship between money demand, inflation, and the risk premium

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  • Sakib, S M Nazmuz

Abstract

In varied economics laws, inflation and interest rates are a standard reference of the economy. to place it merely, once interest rates fall, a lot of people and establishments will borrow extra money from banks and alternative lenders. Rising and rising interest rates push customers into saving mode as a result of the next come on savings. This leaves customers with less financial gain to pay that slows the economy and, as a result, lowers inflation. This relationship shapes up to date financial policies associated is that the most powerful consider the direction of an economy. this suggests that variable interest rates and inflation have a linear combination which will be shapely as economic potency.

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  • Sakib, S M Nazmuz, 2021. "Money Demand and Inflation: The relationship between money demand, inflation, and the risk premium," SocArXiv xfypj, Center for Open Science.
    • Handle: RePEc:osf:socarx:xfypj
    DOI: 10.31219/osf.io/xfypj
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    References listed on IDEAS

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