"The Yield from Money Held" Reconsidered

"The Yield from Money Held" Reconsidered
- Highlight Loc. 155-57  | Added on Friday, August 05, 2011, 04:25 PM

The addition to his cash balance represents an investment in presently felt certainty vis-à-vis a future perceived as less certain. In order to add to his cash balance, a person must restrict his purchases or increase his sales of nonmoney goods (producer or consumer goods). In either case, the outcome is an immediate fall in certain nonmoney goods' prices.