Source: Cobden Centre
by Dr. Frank Shostak
“Could an increase in the demand for money counteract the effect of an increase in the money supply? Now, an increase in the supply of apples by 10 apples in response to the increase in the demand for 10 apples is going to be completely absorbed. This means that after individuals have satisfied their demand for 10 apples zero apples will be left. Following this logic, it would appear that the increase in the supply of money is going to be nullified by an equivalent increase in the demand for money. Henceforth, for the economy to stay in stable condition it is important that the increase in the demand for money is matched by the similar increase in the supply.” (11/26/24)
https://www.cobdencentre.org/2024/11/should-central-banks-accommodate-increases-in-demand-for-money/