Many different models of money stock determination exist in the literature. An attempt is made here to understand why … that the price level adjust in order to cause the real quantity of money to equal the real quantity demanded. In contrast …, in the real bills or banking school tradition, the nominal quantity of money adjusts in order to provide the real …

In any discussion of the demand for money it is important to be clear about the concept of money that is being utilized … payment for any commodity. Money thus conceived will also serve as a store of value, but may be of minor importance to the …