Cambridge Cash Balance Approach | Marshall | Piguo | Macroeconomics | Demand for Money

#Macro #Cambridge #Cash #Balance #Approach #Marshall #Piguo
The Cambridge equation formally represents the Cambridge cash-balance theory, an alternative approach to the classical quantity theory of money. Both quantity theories, Cambridge and classical, attempt to express a relationship among the amount of goods produced, the price level, amounts of money, and how money moves. The Cambridge equation focuses on money demand instead of money supply. The theories also differ in explaining the movement of money: In the classical version, associated with Irving Fisher, money moves at a fixed rate and serves only as a medium of exchange while in the Cambridge approach money acts as a store of value and its movement depends on the desirability of holding cash.
Marginal Efficiency of Capital
• Marginal Efficiency of...
Fisher’s Inter-temporal Choice Model
• Fisher's Inter-tempora...
Permanent Income Hypothesis
• Permanent Income Hypot...
Life Cycle Hypothesis
• Life Cycle Hypothesis ...
Relative Income Hypothesis
• Relative Income Hypoth...
Kuznets’ Consumption Function
• Kuznets' Consumption F...
Keynes’ Psychological Law
• Keynes' Psychological ...