Demand Quote by David Ricardo
“The demand for money is regulated entirely by its value, and its value by its quantity.”
About This Quote
Source Book: Principles of Political Economy and Taxation, 1817
Money’s supply and demand are interdependent: its value depends on quantity, and quantity is set by value.
In simple terms: Money’s price is set by how much there is and how much it’s worth.
Key Takeaway
Monitor both money amount and its purchasing power.
Themes
economics
money
value
policy
Mood
analytical
neutral
Type
educational
economic
When to use this quote
- budgeting
- investment strategy
- government policy
- business pricing
Key Concepts
supply and demand
monetary theory
inflation control
Questions to Reflect On
- How does changing money supply affect everyday prices?
- What policies can stabilize money’s value?
A Different Perspective
Ignoring external factors like confidence can break the relationship.
