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asked ago by (950 points)
Due to modernization of payment methods I find the money sypply and demand model antiquated. The new payment methods as bank transfers or credit cards make the old monetary model obsolet. The monetary phenomena doesn’t work as a currency flow and printed money can’t control the basic variables of an economy. Because of that I have developed a monetary model based in the monetary supply guided by the interest rate, which only operates increasing or decreasing the supply of new money related to the interest rate, and a demand of money, not based in consumption and demand for currency, based in the needs of companies to operate their business according to the resources of the economy as a whole, as consumption or investment.


This is my last work. I would like to know your opinion. If someone is willing to help me in order to do a professional paper contact me.

Ryan McConnell.
commented ago by (950 points)
edited ago by
Where I put prices the real variable is the interest rate in the second graphic. It's a lagged variable.

With a fixed exchange rate and sometimes with a flexible exchange rate monetary supply can be switched like in the old model. My new model accept those kind of switches too.

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