Speculative demand

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Speculative demand (for money)

The need for cash to take advantage of investment opportunities that may arise.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Speculative Demand for Money

In Keynesian economics, a need for money for investment purposes. That is, speculative demand for money is the desire to have money for transactions other than those necessary for living. Speculative demand includes risk capital for securities. According to John Maynard Keynes, speculative demand is one of the three desires governing demand for money, the others being precautionary demand and transactions demand.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The situation created speculative demand for dollars in the market and contributed to depreciation of the rupee, he said.
Return on the rupee- denominated assets should be made more attractive to discourage speculative demand for dollars.
"Moreover, in the run-up to each of the previous seven rate hikes in the current interest rate normalization cycle, starting December 2015, the trend has been for the greenback to strengthen on speculative demand, and for gold to weaken."
Therefore, we want to better understand the different forces that drive demand for Bitcoin, namely two main forces: transactional demand and speculative demand to find out if the network effect exists at all.
The CBI facilitated purchases of gold coins by introducing pre-selling of gold coins and futures trading on the Iran mercantile market in order to absorb part of the speculative demand from investors responding to the exchange rate movements.
In addition, China's homebuilding market remains policy and regulation driven, with the government aiming to maintain affordable housing prices for the general public and to curb speculative demand.
The ratings agency said that the measures implemented recently would reduce speculative demand for residential properties and increase banks' buffers.
When the government spots overshooting property prices or speculative demand in a region, the land minister can designate it as a special zone.
China's new home prices rose as the government supported demand from first-time buyers and despite persistent curbs to dampen speculative demand. Oman is working on improving its tourism sector to revive property market.
The enactment of this law is expected to assist in controlling a swelling current account deficit, decrease trade deficit and rein in speculative demand for US dollar and other international currencies in the kerb market.
(Reuters) BEIJING: China's new home prices grew in January although major cities saw early signs of softening, as the government continued its efforts to rein in speculative demand to fend off bubble risk.
The left-leaning New Democratic Party (NDP) came to power last year with a pledge to improve housing affordability and its first full budget is expected to include measures to curb speculative demand, crack down on tax cheats and money laundering, and stabilize housing markets.