The cost of peanuts manage instantaneously slip if there are
If for example the cost of nuts is well flexible, around can’t ever be an excess need for brand new MOE in the the market having crazy. We ca’t just go through the peanut markets, or even the thread markets, to share with if there is an excess need for new MOE.
Nick: When your cost of nuts is actually perfectly versatile, indeed there can’t ever end up being a surplus interest in the MOE when you look at the the market industry having nuts. I ca’t merely go through the peanut business, and/or bond markets, to inform when there is a surplus demand for the fresh new MOE.
If it is no, it is totally uncertain whether or not there clearly was limited demand for this new liquidity feature of money
I am not you to. I am stating that brand new nominal interest normally represents the latest limited liquidity property value the newest medium away from exchange; we.e. the latest limited demand for brand new MOE. That is right even though the currency/bond marketplace is perfectly versatile. Right here is the question (and also this reacts to Squeaky, above). This is simply not whether or not someone could have instance among my personal limited cash. It’s whether expenses would-have-been apply to had stocks and securities become extra once the more MOE. Read More