Nick at Macromania:
Let's start with a very simple model with no commercial banks. Individuals hold Fed currency. They have a desired stock of money, and the difference between the actual and desired stock is excess money.
"The difference between the actual and desired stock of money is excess money."
Anybody here think they have "excess" money? Raise your hand.
2 comments:
I just raised my hand. I have excess money. I keep meaning to go and buy some stocks with it. Because I would prefer to hold stocks instead. But I keep procrastinating, and writing blog posts instead.
Ha ha Nick, so its just procrastination? I think you just don't want to hold stocks cuz they are too expensive. If you really thought they were a good deal you'd quit blogging for a minute and go buy them.
I don't want to hold them either so I have mostly cash, but I will certainly take more, I don't have an excessive amount.
Post a Comment