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Should Central Banks Accommodate Increases in Demand for Money?

Should Central Banks Accommodate Increases in Demand for Money?
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Frank Shostak
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Commentary
Could an increase in the demand for money counteract the effect of an increase in the money supply? For example, if there were an increase in the supply of apples by 10 and, simultaneously, an increase in the demand for 10 apples, this would be completely absorbed. In other words, after individuals have satisfied their demand for 10 apples, zero apples would be left.
Frank Shostak
Frank Shostak
Author
Frank Shostak, Ph.D., is an associated scholar of the Mises Institute. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies. He has taught at the University of Pretoria and the Graduate Business School at Witwatersrand University.