Please explain why the velocity of money moves procyclically with interest rate in the Keynes's liquidity preference

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Please explain why the velocity of money moves procyclically with interest rate in the Keynes's liquidity preference model?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Dec 22, 2017 07:42 AM

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Please explain why the velocity of money moves procyclically with interest rate in the Keynes's liquidity preference

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Keyness liquidity preference theory modeled money demand as ...View the full answer

Money Banking and Financial Markets

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