It is known as demand for money, the payment of a merchandise that preserves a value, that is, it is the amount of money used as a form of payment destined for the acquisition of services and goods; There are two ideologies of the influence of the demand for money in a country.
The first is known as "Keynesianism" and indicates that the demand for money is sustainable for three reasons: a count is needed of the transactions carried out by individuals and the companies they manage, which need money to purchase goods or services. On the other hand, it is a secure form of payment that is not subject to unforeseen situations, another reason is to generate speculation of those bonds whose payment is not enough, it is important to know that this theory maintains that the demand for money is influenced by constant changes of prices to obtain some service.
The second ideology is "Monetarism" created by the economist Milton Friedman, this theory affirms that there are different changes in the circulation of money inside or outside a nation but only in a short term, while in the long term the speed of monetary exchange it becomes constant being the basis of a good economy. Through different studies that Friedman carries out to value the monetary exchange of the United States, he concluded that decomposing phenomena of an economy such as inflation are the result of Keynesian policies because they favor an increase in the amount of money handled by the population without setting a price cap that is not subject to change.
