speculative demand

The speculative demand for money is very low at this interest rate and equal to only £5 million.

This speculative demand can be quite high when the price of securities is considered certain to fall.

As the rate of interest falls, so the speculative demand for money increases.

We have talked about expectations and their importance in determining the speculative demand for money.

And all this speculative demand pushed prices even higher.

The speculative demand for money balances is termed L 2.

The speculative demand becomes virtually infinite at this minimum rate of interest.

According to Keynesians, the speculative demand for money is highly responsive to changes in interest rates.

Speculative demand is much harder for central banks to accommodate, which they influence by adjusting interest rates.

Speculative demand is inversely related to the interest rate.

The speculative demand can be quite large.

That is, there is no precautionary, finance, or speculative demand for money.

Speculative demand refers to real balances held for the purpose of avoiding capital loss from holding bonds.

Thus the speculative demand for money will be strongly influenced by the expectations of the market as to the future course of financial asset prices.

A policy of controlling interest rates is likely to cause a more stable demand for money, with fewer shifts in the speculative demand.

As the interest rate rises, the speculative demand for money falls and money market equilibrium is eventually restored.

When BC is privatised, speculative demands will threaten even more sites and communities.

Explain why there is an inverse relationship between the speculative demand for money and the rate of interest in the Keynesian liquidity-preference theory.

She estimates speculative demand for commodity futures has increased since 2008 by 40-80% in agricultural futures.

If any of these cause people to expect a lower exchange rate, the speculative demand for money will fall: L 2 will shift to the left.

These fluctuations in interest rates will cause further uncertainty and further shifts in the speculative demand for money.

It was in his analysis of the speculative demand for money that Keynes differed fundamentally from his predecessors.

"I watch speculative demand surge and then wane; when it gets excessive, I try to get out of the way before the crash," she said.

The traditional Keynesian approach divides the demand for money into three elements: the transactions, precautionary, and speculative demands.

Conversely, if the rate of interest is low and is thought likely to rise, the speculative demand is likely to be very high.